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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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What Is Market Research?

• How It Works
• Primary vs. Secondary
• How to Conduct Research

The Bottom Line

• Marketing Essentials

How to Do Market Research, Types, and Example

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Market research examines consumer behavior and trends in the economy to help a business develop and fine-tune its business idea and strategy. It helps a business understand its target market by gathering and analyzing data.

Market research is the process of evaluating the viability of a new service or product through research conducted directly with potential customers. It allows a company to define its target market and get opinions and other feedback from consumers about their interest in a product or service.

Research may be conducted in-house or by a third party that specializes in market research. It can be done through surveys and focus groups, among other ways. Test subjects are usually compensated with product samples or a small stipend for their time.

Key Takeaways

• Companies conduct market research before introducing new products to determine their appeal to potential customers.
• Tools include focus groups, telephone interviews, and questionnaires.
• The results of market research inform the final design of the product and determine how it will be positioned in the marketplace.
• Market research usually combines primary information, gathered directly from consumers, and secondary information, which is data available from external sources.

Market Research

How market research works.

Market research is used to determine the viability of a new product or service. The results may be used to revise the product design and fine-tune the strategy for introducing it to the public. This can include information gathered for the purpose of determining market segmentation . It also informs product differentiation , which is used to tailor advertising.

A business engages in various tasks to complete the market research process. It gathers information based on the market sector being targeted by the product. This information is then analyzed and relevant data points are interpreted to draw conclusions about how the product may be optimally designed and marketed to the market segment for which it is intended.

It is a critical component in the research and development (R&D) phase of a new product or service introduction. Market research can be conducted in many different ways, including surveys, product testing, interviews, and focus groups.

Market research is a critical tool that companies use to understand what consumers want, develop products that those consumers will use, and maintain a competitive advantage over other companies in their industry.

Primary Market Research vs. Secondary Market Research

Market research usually consists of a combination of:

• Primary research, gathered by the company or by an outside company that it hires
• Secondary research, which draws on external sources of data

Primary Market Research

Primary research generally falls into two categories: exploratory and specific research.

• Exploratory research is less structured and functions via open-ended questions. The questions may be posed in a focus group setting, telephone interviews, or questionnaires. It results in questions or issues that the company needs to address about a product that it has under development.
• Specific research delves more deeply into the problems or issues identified in exploratory research.

Secondary Market Research

All market research is informed by the findings of other researchers about the needs and wants of consumers. Today, much of this research can be found online.

Secondary research can include population information from government census data , trade association research reports , polling results, and research from other businesses operating in the same market sector.

History of Market Research

Formal market research began in Germany during the 1920s. In the United States, it soon took off with the advent of the Golden Age of Radio.

Companies that created advertisements for this new entertainment medium began to look at the demographics of the audiences who listened to each of the radio plays, music programs, and comedy skits that were presented.

They had once tried to reach the widest possible audience by placing their messages on billboards or in the most popular magazines. With radio programming, they had the chance to target rural or urban consumers, teenagers or families, and judge the results by the sales numbers that followed.

Types of Market Research

Face-to-face interviews.

From their earliest days, market research companies would interview people on the street about the newspapers and magazines that they read regularly and ask whether they recalled any of the ads or brands that were published in them. Data collected from these interviews were compared to the circulation of the publication to determine the effectiveness of those ads.

Market research and surveys were adapted from these early techniques.

To get a strong understanding of your market, it’s essential to understand demand, market size, economic indicators, location, market saturation, and pricing.

Focus Groups

A focus group is a small number of representative consumers chosen to try a product or watch an advertisement.

Afterward, the group is asked for feedback on their perceptions of the product, the company’s brand, or competing products. The company then takes that information and makes decisions about what to do with the product or service, whether that's releasing it, making changes, or abandoning it altogether.

Phone Research

The man-on-the-street interview technique soon gave way to the telephone interview. A telephone interviewer could collect information in a more efficient and cost-effective fashion.

Telephone research was a preferred tactic of market researchers for many years. It has become much more difficult in recent years as landline phone service dwindles and is replaced by less accessible mobile phones.

Survey Research

As an alternative to focus groups, surveys represent a cost-effective way to determine consumer attitudes without having to interview anyone in person. Consumers are sent surveys in the mail, usually with a coupon or voucher to incentivize participation. These surveys help determine how consumers feel about the product, brand, and price point.

Online Market Research

With people spending more time online, market research activities have shifted online as well. Data collection still uses a survey-style form. But instead of companies actively seeking participants by finding them on the street or cold calling them on the phone, people can choose to sign up, take surveys, and offer opinions when they have time.

This makes the process far less intrusive and less rushed, since people can participate on their own time and of their own volition.

How to Conduct Market Research

The first step to effective market research is to determine the goals of the study. Each study should seek to answer a clear, well-defined problem. For example, a company might seek to identify consumer preferences, brand recognition, or the comparative effectiveness of different types of ad campaigns.

After that, the next step is to determine who will be included in the research. Market research is an expensive process, and a company cannot waste resources collecting unnecessary data. The firm should decide in advance which types of consumers will be included in the research, and how the data will be collected. They should also account for the probability of statistical errors or sampling bias .

The next step is to collect the data and analyze the results. If the two previous steps have been completed accurately, this should be straightforward. The researchers will collect the results of their study, keeping track of the ages, gender, and other relevant data of each respondent. This is then analyzed in a marketing report that explains the results of their research.

The last step is for company executives to use their market research to make business decisions. Depending on the results of their research, they may choose to target a different group of consumers, or they may change their price point or some product features.

The results of these changes may eventually be measured in further market research, and the process will begin all over again.

Benefits of Market Research

Market research is essential for developing brand loyalty and customer satisfaction. Since it is unlikely for a product to appeal equally to every consumer, a strong market research program can help identify the key demographics and market segments that are most likely to use a given product.

Market research is also important for developing a company’s advertising efforts. For example, if a company’s market research determines that its consumers are more likely to use Facebook than X (formerly Twitter), it can then target its advertisements to one platform instead of another. Or, if they determine that their target market is value-sensitive rather than price-sensitive, they can work on improving the product rather than reducing their prices.

Market research only works when subjects are honest and open to participating.

Example of Market Research

Many companies use market research to test new products or get information from consumers about what kinds of products or services they need and don’t currently have.

For example, a company that’s considering starting a business might conduct market research to test the viability of its product or service. If the market research confirms consumer interest, the business can proceed confidently with its business plan . If not, the company can use the results of the market research to make adjustments to the product to bring it in line with customer desires.

What Are the Main Types of Market Research?

The main types of market research are primary research and secondary research. Primary research includes focus groups, polls, and surveys. Secondary research includes academic articles, infographics, and white papers.

Qualitative research gives insights into how customers feel and think. Quantitative research uses data and statistics such as website views, social media engagement, and subscriber numbers.

What Is Online Market Research?

Online market research uses the same strategies and techniques as traditional primary and secondary market research, but it is conducted on the Internet. Potential customers may be asked to participate in a survey or give feedback on a product. The responses may help the researchers create a profile of the likely customer for a new product.

What Are Paid Market Research Surveys?

Paid market research involves rewarding individuals who agree to participate in a study. They may be offered a small payment for their time or a discount coupon in return for filling out a questionnaire or participating in a focus group.

What Is a Market Study?

A market study is an analysis of consumer demand for a product or service. It looks at all of the factors that influence demand for a product or service. These include the product’s price, location, competition, and substitutes as well as general economic factors that could influence the new product’s adoption, for better or worse.

Market research is a key component of a company’s research and development (R&D) stage. It helps companies understand in advance the viability of a new product that they have in development and to see how it might perform in the real world.

Britannica Money. “ Market Research .”

U.S. Small Business Administration. “ Market Research and Competitive Analysis .”

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How to do market research in 4 steps: a lean approach to marketing research

From pinpointing your target audience and assessing your competitive advantage, to ongoing product development and customer satisfaction efforts, market research is a practice your business can only benefit from.

Learn how to conduct quick and effective market research using a lean approach in this article full of strategies and practical examples. 

Last updated

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A comprehensive (and successful) business strategy is not complete without some form of market research—you can’t make informed and profitable business decisions without truly understanding your customer base and the current market trends that drive your business.

In this article, you’ll learn how to conduct quick, effective market research  using an approach called 'lean market research'. It’s easier than you might think, and it can be done at any stage in a product’s lifecycle.

How to conduct lean market research in 4 steps

What is market research, why is market research so valuable, advantages of lean market research, 4 common market research methods, 5 common market research questions, market research faqs.

We’ll jump right into our 4-step approach to lean market research. To show you how it’s done in the real world, each step includes a practical example from Smallpdf , a Swiss company that used lean market research to reduce their tool’s error rate by 75% and boost their Net Promoter Score® (NPS) by 1%.

Research your market the lean way...

From on-page surveys to user interviews, Hotjar has the tools to help you scope out your market and get to know your customers—without breaking the bank.

The following four steps and practical examples will give you a solid market research plan for understanding who your users are and what they want from a company like yours.

1. Create simple user personas

A user persona is a semi-fictional character based on psychographic and demographic data from people who use websites and products similar to your own. Start by defining broad user categories, then elaborate on them later to further segment your customer base and determine your ideal customer profile .

How to get the data: use on-page or emailed surveys and interviews to understand your users and what drives them to your business.

How to do it right: whatever survey or interview questions you ask, they should answer the following questions about the customer:

Who are they?

What is their main goal?

What is their main barrier to achieving this goal?

Pitfalls to avoid:

Don’t ask too many questions! Keep it to five or less, otherwise you’ll inundate them and they’ll stop answering thoughtfully.

Don’t worry too much about typical demographic questions like age or background. Instead, focus on the role these people play (as it relates to your product) and their goals.

How Smallpdf did it: Smallpdf ran an on-page survey for a couple of weeks and received 1,000 replies. They learned that many of their users were administrative assistants, students, and teachers.

Next, they used the survey results to create simple user personas like this one for admins:

Who are they? Administrative Assistants.

What is their main goal? Creating Word documents from a scanned, hard-copy document or a PDF where the source file was lost.

What is their main barrier to achieving it? Converting a scanned PDF doc to a Word file.

💡Pro tip: Smallpdf used Hotjar Surveys to run their user persona survey. Our survey tool helped them avoid the pitfalls of guesswork and find out who their users really are, in their own words. 

You can design a survey and start running it in minutes with our easy-to-use drag and drop builder. Customize your survey to fit your needs, from a sleek one-question pop-up survey to a fully branded questionnaire sent via email. 

We've also created 40+ free survey templates that you can start collecting data with, including a user persona survey like the one Smallpdf used.

2. Conduct observational research

Observational research involves taking notes while watching someone use your product (or a similar product).

Overt vs. covert observation

Overt observation involves asking customers if they’ll let you watch them use your product. This method is often used for user testing and it provides a great opportunity for collecting live product or customer feedback .

Covert observation means studying users ‘in the wild’ without them knowing. This method works well if you sell a type of product that people use regularly, and it offers the purest observational data because people often behave differently when they know they’re being watched. 

Tips to do it right:

Record an entry in your field notes, along with a timestamp, each time an action or event occurs.

Make note of the users' workflow, capturing the ‘what,’ ‘why,’ and ‘for whom’ of each action.

Don’t record identifiable video or audio data without consent. If recording people using your product is helpful for achieving your research goal, make sure all participants are informed and agree to the terms.

Don’t forget to explain why you’d like to observe them (for overt observation). People are more likely to cooperate if you tell them you want to improve the product.

💡Pro tip: while conducting field research out in the wild can wield rewarding results, you can also conduct observational research remotely. Hotjar Recordings is a tool that lets you capture anonymized user sessions of real people interacting with your website. 

Observe how customers navigate your pages and products to gain an inside look into their user behavior . This method is great for conducting exploratory research with the purpose of identifying more specific issues to investigate further, like pain points along the customer journey and opportunities for optimizing conversion .

With Hotjar Recordings you can observe real people using your site without capturing their sensitive information

How Smallpdf did it: here’s how Smallpdf observed two different user personas both covertly and overtly.

Observing students (covert): Kristina Wagner, Principle Product Manager at Smallpdf, went to cafes and libraries at two local universities and waited until she saw students doing PDF-related activities. Then she watched and took notes from a distance. One thing that struck her was the difference between how students self-reported their activities vs. how they behaved (i.e, the self-reporting bias). Students, she found, spent hours talking, listening to music, or simply staring at a blank screen rather than working. When she did find students who were working, she recorded the task they were performing and the software they were using (if she recognized it).

Observing administrative assistants (overt): Kristina sent emails to admins explaining that she’d like to observe them at work, and she asked those who agreed to try to batch their PDF work for her observation day. While watching admins work, she learned that they frequently needed to scan documents into PDF-format and then convert those PDFs into Word docs. By observing the challenges admins faced, Smallpdf knew which products to target for improvement.

“Data is really good for discovery and validation, but there is a bit in the middle where you have to go and find the human.”

3. Conduct individual interviews

Interviews are one-on-one conversations with members of your target market. They allow you to dig deep and explore their concerns, which can lead to all sorts of revelations.

Listen more, talk less. Be curious.

Act like a journalist, not a salesperson. Rather than trying to talk your company up, ask people about their lives, their needs, their frustrations, and how a product like yours could help.

Ask "why?" so you can dig deeper. Get into the specifics and learn about their past behavior.

Record the conversation. Focus on the conversation and avoid relying solely on notes by recording the interview. There are plenty of services that will transcribe recorded conversations for a good price (including Hotjar!).

Avoid asking leading questions , which reveal bias on your part and pushes respondents to answer in a certain direction (e.g. “Have you taken advantage of the amazing new features we just released?).

Don't ask loaded questions , which sneak in an assumption which, if untrue, would make it impossible to answer honestly. For example, we can’t ask you, “What did you find most useful about this article?” without asking whether you found the article useful in the first place.

Be cautious when asking opinions about the future (or predictions of future behavior). Studies suggest that people aren’t very good at predicting their future behavior. This is due to several cognitive biases, from the misguided exceptionalism bias (we’re good at guessing what others will do, but we somehow think we’re different), to the optimism bias (which makes us see things with rose-colored glasses), to the ‘illusion of control’ (which makes us forget the role of randomness in future events).

How Smallpdf did it: Kristina explored her teacher user persona by speaking with university professors at a local graduate school. She learned that the school was mostly paperless and rarely used PDFs, so for the sake of time, she moved on to the admins.

A bit of a letdown? Sure. But this story highlights an important lesson: sometimes you follow a lead and come up short, so you have to make adjustments on the fly. Lean market research is about getting solid, actionable insights quickly so you can tweak things and see what works.

💡Pro tip: to save even more time, conduct remote interviews using an online user research service like Hotjar Engage , which automates the entire interview process, from recruitment and scheduling to hosting and recording.

You can interview your own customers or connect with people from our diverse pool of 200,000+ participants from 130+ countries and 25 industries. And no need to fret about taking meticulous notes—Engage will automatically transcribe the interview for you.

4. Analyze the data (without drowning in it)

The following techniques will help you wrap your head around the market data you collect without losing yourself in it. Remember, the point of lean market research is to find quick, actionable insights.

A flow model is a diagram that tracks the flow of information within a system. By creating a simple visual representation of how users interact with your product and each other, you can better assess their needs.

You’ll notice that admins are at the center of Smallpdf’s flow model, which represents the flow of PDF-related documents throughout a school. This flow model shows the challenges that admins face as they work to satisfy their own internal and external customers.

Affinity diagram

An affinity diagram is a way of sorting large amounts of data into groups to better understand the big picture. For example, if you ask your users about their profession, you’ll notice some general themes start to form, even though the individual responses differ. Depending on your needs, you could group them by profession, or more generally by industry.

We wrote a guide about how to analyze open-ended questions to help you sort through and categorize large volumes of response data. You can also do this by hand by clipping up survey responses or interview notes and grouping them (which is what Kristina does).

“For an interview, you will have somewhere between 30 and 60 notes, and those notes are usually direct phrases. And when you literally cut them up into separate pieces of paper and group them, they should make sense by themselves.”

Pro tip: if you’re conducting an online survey with Hotjar, keep your team in the loop by sharing survey responses automatically via our Slack and Microsoft Team integrations. Reading answers as they come in lets you digest the data in pieces and can help prepare you for identifying common themes when it comes time for analysis.

Hotjar lets you easily share survey responses with your team

Customer journey map

A customer journey map is a diagram that shows the way a typical prospect becomes a paying customer. It outlines their first interaction with your brand and every step in the sales cycle, from awareness to repurchase (and hopefully advocacy).

The above  customer journey map , created by our team at Hotjar, shows many ways a customer might engage with our tool. Your map will be based on your own data and business model.

📚 Read more: if you’re new to customer journey maps, we wrote this step-by-step guide to creating your first customer journey map in 2 and 1/2 days with free templates you can download and start using immediately.

Next steps: from research to results

So, how do you turn market research insights into tangible business results? Let’s look at the actions Smallpdf took after conducting their lean market research: first they implemented changes, then measured the impact.

Implement changes

Based on what Smallpdf learned about the challenges that one key user segment (admins) face when trying to convert PDFs into Word files, they improved their ‘PDF to Word’ conversion tool.

We won’t go into the details here because it involves a lot of technical jargon, but they made the entire process simpler and more straightforward for users. Plus, they made it so that their system recognized when you drop a PDF file into their ‘Word to PDF’ converter instead of the ‘PDF to Word’ converter, so users wouldn’t have to redo the task when they made that mistake. 

In other words: simple market segmentation for admins showed a business need that had to be accounted for, and customers are happier overall after Smallpdf implemented an informed change to their product.

Measure results

According to the Lean UX model, product and UX changes aren’t retained unless they achieve results.

Smallpdf’s changes produced:

A 75% reduction in error rate for the ‘PDF to Word’ converter

A 1% increase in NPS

Greater confidence in the team’s marketing efforts

"With all the changes said and done, we've cut our original error rate in four, which is huge. We increased our NPS by +1%, which isn't huge, but it means that of the users who received a file, they were still slightly happier than before, even if they didn't notice that anything special happened at all.”

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Market research (or marketing research) is any set of techniques used to gather information and better understand a company’s target market. This might include primary research on brand awareness and customer satisfaction or secondary market research on market size and competitive analysis. Businesses use this information to design better products, improve user experience, and craft a marketing strategy that attracts quality leads and improves conversion rates.

David Darmanin, one of Hotjar’s founders, launched two startups before Hotjar took off—but both companies crashed and burned. Each time, he and his team spent months trying to design an amazing new product and user experience, but they failed because they didn’t have a clear understanding of what the market demanded.

With Hotjar, they did things differently . Long story short, they conducted market research in the early stages to figure out what consumers really wanted, and the team made (and continues to make) constant improvements based on market and user research.

Without market research, it’s impossible to understand your users. Sure, you might have a general idea of who they are and what they need, but you have to dig deep if you want to win their loyalty.

Here’s why research matters:

Obsessing over your users is the only way to win. If you don’t care deeply about them, you’ll lose potential customers to someone who does.

Analytics gives you the ‘what’, while research gives you the ‘why’. Big data, user analytics , and dashboards can tell you what people do at scale, but only research can tell you what they’re thinking and why they do what they do. For example, analytics can tell you that customers leave when they reach your pricing page, but only research can explain why.

Research beats assumptions, trends, and so-called best practices. Have you ever watched your colleagues rally behind a terrible decision? Bad ideas are often the result of guesswork, emotional reasoning, death by best practices , and defaulting to the Highest Paid Person’s Opinion (HiPPO). By listening to your users and focusing on their customer experience , you’re less likely to get pulled in the wrong direction.

Research keeps you from planning in a vacuum. Your team might be amazing, but you and your colleagues simply can’t experience your product the way your customers do. Customers might use your product in a way that surprises you, and product features that seem obvious to you might confuse them. Over-planning and refusing to test your assumptions is a waste of time, money, and effort because you’ll likely need to make changes once your untested business plan gets put into practice.

Lean User Experience (UX) design is a model for continuous improvement that relies on quick, efficient research to understand customer needs and test new product features.

Lean market research can help you become more...

Efficient: it gets you closer to your customers, faster.

Cost-effective: no need to hire an expensive marketing firm to get things started.

Competitive: quick, powerful insights can place your products on the cutting edge.

As a small business or sole proprietor, conducting lean market research is an attractive option when investing in a full-blown research project might seem out of scope or budget.

There are lots of different ways you could conduct market research and collect customer data, but you don’t have to limit yourself to just one research method. Four common types of market research techniques include surveys, interviews, focus groups, and customer observation.

Which method you use may vary based on your business type: ecommerce business owners have different goals from SaaS businesses, so it’s typically prudent to mix and match these methods based on your particular goals and what you need to know.

1. Surveys: the most commonly used

Surveys are a form of qualitative research that ask respondents a short series of open- or closed-ended questions, which can be delivered as an on-screen questionnaire or via email. When we asked 2,000 Customer Experience (CX) professionals about their company’s approach to research , surveys proved to be the most commonly used market research technique.

What makes online surveys so popular?  

They’re easy and inexpensive to conduct, and you can do a lot of data collection quickly. Plus, the data is pretty straightforward to analyze, even when you have to analyze open-ended questions whose answers might initially appear difficult to categorize.

We've built a number of survey templates ready and waiting for you. Grab a template and share with your customers in just a few clicks.

💡 Pro tip: you can also get started with Hotjar AI for Surveys to create a survey in mere seconds . Just enter your market research goal and watch as the AI generates a survey and populates it with relevant questions. 

Once you’re ready for data analysis, the AI will prepare an automated research report that succinctly summarizes key findings, quotes, and suggested next steps.

An example research report generated by Hotjar AI for Surveys

2. Interviews: the most insightful

Interviews are one-on-one conversations with members of your target market. Nothing beats a face-to-face interview for diving deep (and reading non-verbal cues), but if an in-person meeting isn’t possible, video conferencing is a solid second choice.

Regardless of how you conduct it, any type of in-depth interview will produce big benefits in understanding your target customers.

What makes interviews so insightful?

By speaking directly with an ideal customer, you’ll gain greater empathy for their experience , and you can follow insightful threads that can produce plenty of 'Aha!' moments.

3. Focus groups: the most unreliable

Focus groups bring together a carefully selected group of people who fit a company’s target market. A trained moderator leads a conversation surrounding the product, user experience, or marketing message to gain deeper insights.

What makes focus groups so unreliable?

If you’re new to market research, we wouldn’t recommend starting with focus groups. Doing it right is expensive , and if you cut corners, your research could fall victim to all kinds of errors. Dominance bias (when a forceful participant influences the group) and moderator style bias (when different moderator personalities bring about different results in the same study) are two of the many ways your focus group data could get skewed.

4. Observation: the most powerful

During a customer observation session, someone from the company takes notes while they watch an ideal user engage with their product (or a similar product from a competitor).

What makes observation so clever and powerful?

‘Fly-on-the-wall’ observation is a great alternative to focus groups. It’s not only less expensive, but you’ll see people interact with your product in a natural setting without influencing each other. The only downside is that you can’t get inside their heads, so observation still isn't a recommended replacement for customer surveys and interviews.

The following questions will help you get to know your users on a deeper level when you interview them. They’re general questions, of course, so don’t be afraid to make them your own.

1. Who are you and what do you do?

How you ask this question, and what you want to know, will vary depending on your business model (e.g. business-to-business marketing is usually more focused on someone’s profession than business-to-consumer marketing).

It’s a great question to start with, and it’ll help you understand what’s relevant about your user demographics (age, race, gender, profession, education, etc.), but it’s not the be-all-end-all of market research. The more specific questions come later.

2. What does your day look like?

This question helps you understand your users’ day-to-day life and the challenges they face. It will help you gain empathy for them, and you may stumble across something relevant to their buying habits.

3. Do you ever purchase [product/service type]?

This is a ‘yes or no’ question. A ‘yes’ will lead you to the next question.

4. What problem were you trying to solve or what goal were you trying to achieve?

This question strikes to the core of what someone’s trying to accomplish and why they might be willing to pay for your solution.

5. Take me back to the day when you first decided you needed to solve this kind of problem or achieve this goal.

This is the golden question, and it comes from Adele Revella, Founder and CEO of Buyer Persona Institute . It helps you get in the heads of your users and figure out what they were thinking the day they decided to spend money to solve a problem.

If you take your time with this question, digging deeper where it makes sense, you should be able to answer all the relevant information you need to understand their perspective.

“The only scripted question I want you to ask them is this one: take me back to the day when you first decided that you needed to solve this kind of problem or achieve this kind of a goal. Not to buy my product, that’s not the day. We want to go back to the day that when you thought it was urgent and compelling to go spend money to solve a particular problem or achieve a goal. Just tell me what happened.”

— Adele Revella , Founder/CEO at Buyer Persona Institute

Bonus question: is there anything else you’d like to tell me?

This question isn’t just a nice way to wrap it up—it might just give participants the opportunity they need to tell you something you really need to know.

That’s why Sarah Doody, author of UX Notebook , adds it to the end of her written surveys.

“I always have a last question, which is just open-ended: “Is there anything else you would like to tell me?” And sometimes, that’s where you get four paragraphs of amazing content that you would never have gotten if it was just a Net Promoter Score [survey] or something like that.”

What is the difference between qualitative and quantitative research?

Qualitative research asks questions that can’t be reduced to a number, such as, “What is your job title?” or “What did you like most about your customer service experience?” 

Quantitative research asks questions that can be answered with a numeric value, such as, “What is your annual salary?” or “How was your customer service experience on a scale of 1-5?”

 → Read more about the differences between qualitative and quantitative user research .

How do I do my own market research?

You can do your own quick and effective market research by 

Surveying your customers

Building user personas

Studying your users through interviews and observation

Wrapping your head around your data with tools like flow models, affinity diagrams, and customer journey maps

What is the difference between market research and user research?

Market research takes a broad look at potential customers—what problems they’re trying to solve, their buying experience, and overall demand. User research, on the other hand, is more narrowly focused on the use (and usability ) of specific products.

What are the main criticisms of market research?

Many marketing professionals are critical of market research because it can be expensive and time-consuming. It’s often easier to convince your CEO or CMO to let you do lean market research rather than something more extensive because you can do it yourself. It also gives you quick answers so you can stay ahead of the competition.

Do I need a market research firm to get reliable data?

Absolutely not! In fact, we recommend that you start small and do it yourself in the beginning. By following a lean market research strategy, you can uncover some solid insights about your clients. Then you can make changes, test them out, and see whether the results are positive. This is an excellent strategy for making quick changes and remaining competitive.

Net Promoter, Net Promoter System, Net Promoter Score, NPS, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld, and Satmetrix Systems, Inc.

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• Knowledge Base
• Starting the research process
• How to Define a Research Problem | Ideas & Examples

How to Define a Research Problem | Ideas & Examples

Published on November 2, 2022 by Shona McCombes and Tegan George. Revised on May 31, 2023.

A research problem is a specific issue or gap in existing knowledge that you aim to address in your research. You may choose to look for practical problems aimed at contributing to change, or theoretical problems aimed at expanding knowledge.

Some research will do both of these things, but usually the research problem focuses on one or the other. The type of research problem you choose depends on your broad topic of interest and the type of research you think will fit best.

This article helps you identify and refine a research problem. When writing your research proposal or introduction , formulate it as a problem statement and/or research questions .

Table of contents

Why is the research problem important, step 1: identify a broad problem area, step 2: learn more about the problem, other interesting articles, frequently asked questions about research problems.

Having an interesting topic isn’t a strong enough basis for academic research. Without a well-defined research problem, you are likely to end up with an unfocused and unmanageable project.

You might end up repeating what other people have already said, trying to say too much, or doing research without a clear purpose and justification. You need a clear problem in order to do research that contributes new and relevant insights.

Whether you’re planning your thesis , starting a research paper , or writing a research proposal , the research problem is the first step towards knowing exactly what you’ll do and why.

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As you read about your topic, look for under-explored aspects or areas of concern, conflict, or controversy. Your goal is to find a gap that your research project can fill.

Practical research problems

If you are doing practical research, you can identify a problem by reading reports, following up on previous research, or talking to people who work in the relevant field or organization. You might look for:

• Issues with performance or efficiency
• Processes that could be improved
• Areas of concern among practitioners
• Difficulties faced by specific groups of people

Examples of practical research problems

Voter turnout in New England has been decreasing, in contrast to the rest of the country.

The HR department of a local chain of restaurants has a high staff turnover rate.

A non-profit organization faces a funding gap that means some of its programs will have to be cut.

Theoretical research problems

If you are doing theoretical research, you can identify a research problem by reading existing research, theory, and debates on your topic to find a gap in what is currently known about it. You might look for:

• A phenomenon or context that has not been closely studied
• A contradiction between two or more perspectives
• A situation or relationship that is not well understood
• A troubling question that has yet to be resolved

Examples of theoretical research problems

The effects of long-term Vitamin D deficiency on cardiovascular health are not well understood.

The relationship between gender, race, and income inequality has yet to be closely studied in the context of the millennial gig economy.

Historians of Scottish nationalism disagree about the role of the British Empire in the development of Scotland’s national identity.

Next, you have to find out what is already known about the problem, and pinpoint the exact aspect that your research will address.

Context and background

• Who does the problem affect?
• Is it a newly-discovered problem, or a well-established one?
• What research has already been done?
• What, if any, solutions have been proposed?
• What are the current debates about the problem? What is missing from these debates?

Specificity and relevance

• What particular place, time, and/or group of people will you focus on?
• What aspects will you not be able to tackle?
• What will the consequences be if the problem is not resolved?

Example of a specific research problem

A local non-profit organization focused on alleviating food insecurity has always fundraised from its existing support base. It lacks understanding of how best to target potential new donors. To be able to continue its work, the organization requires research into more effective fundraising strategies.

Once you have narrowed down your research problem, the next step is to formulate a problem statement , as well as your research questions or hypotheses .

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If you want to know more about the research process , methodology , research bias , or statistics , make sure to check out some of our other articles with explanations and examples.

Methodology

• Sampling methods
• Simple random sampling
• Stratified sampling
• Cluster sampling
• Likert scales
• Reproducibility

 Statistics

• Null hypothesis
• Statistical power
• Probability distribution
• Effect size
• Poisson distribution

Research bias

• Optimism bias
• Cognitive bias
• Implicit bias
• Hawthorne effect
• Anchoring bias
• Explicit bias

All research questions should be:

• Focused on a single problem or issue
• Researchable using primary and/or secondary sources
• Feasible to answer within the timeframe and practical constraints
• Specific enough to answer thoroughly
• Complex enough to develop the answer over the space of a paper or thesis
• Relevant to your field of study and/or society more broadly

Research questions anchor your whole project, so it’s important to spend some time refining them.

In general, they should be:

• Focused and researchable
• Answerable using credible sources
• Complex and arguable
• Feasible and specific
• Relevant and original

Your research objectives indicate how you’ll try to address your research problem and should be specific:

A research aim is a broad statement indicating the general purpose of your research project. It should appear in your introduction at the end of your problem statement , before your research objectives.

Research objectives are more specific than your research aim. They indicate the specific ways you’ll address the overarching aim.

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Home Market Research

Research problem: Everything a market researcher needs to know

A research process includes several steps that assist individuals involved in a study in conducting successful testing. Defining a research problem is an essential step in any research and can help in outlining your study’s methodology.

LEARN ABOUT: Research Process Steps

In this article, we will define a research problem and go over everything a researcher should know.

Content Index

What is a research problem?

What is the research problem statement, what is the purpose of a research problem statement, characteristics of a research problem, characteristics of a research problem statement.

• Components of a research problem?

Steps to formulate a research problem

Marketing research problem example, research problem statement example, extensive research problem software, platform, and tool, top seven benefits of using a robust research software, advantages of formulating a research problem, how questionpro helps researchers solve research problems.

A research problem is a specific question, problem, or difficulty that needs to be investigated or analyzed.

It is a concise statement that expresses the difference between what is currently known and what needs to be known or the difference between a current situation and a desired state.

Examining research problems helps to identify the key concepts and terms of research. A research problem should be clear, concise, and specific enough to guide the process and contribute to the definition of research project objectives, methods, and outcomes. It is the foundation of any research project, and a well-formulated research problem is required for any research study to be successful.

A research problem statement is a brief and precise description of the problem that a researcher wishes to investigate. It defines the research’s focus and serves as a framework for developing research questions or hypotheses.

Typically, the problem statement begins with a broad topic or research area and then narrows down to a specific research question or problem. It should explain why the research is important, what gaps in knowledge or understanding exist, and what potential implications or applications the research may have.

A good research statement keeps the researcher focused and guides the research project’s development. It also assists other researchers in comprehending the scope and significance of the research, as well as identifying potential areas for collaboration or further investigation.

LEARN ABOUT:   Action Research

A problem statement in research seeks to achieve the following:

• Introduce the importance of the topic in the research proposal.
• Position the problem in an appropriate and particular context.
• Provide a framework to analyze and report results.

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Make sure to fulfill these essential characteristics to have an effective research problem. Due to the variety of research, we conduct, it is not possible to inculcate all these characteristics. However, ensure to consider and cover most of these characteristics to enable people to look at, examine, and understand the marketing research problem.

Covers the essential needs or issues

LEARN ABOUT: Market research vs marketing research

The problem is stated logically and clearly

The research project is based on actual facts and evidence (non-hypothetical), the research problem generates and encourages research questions, it fits the budget and time frame, sufficient data can be obtained, the problem has an unsatisfactory answer, or is it a new problem.

Here are the characteristics of a research problem statement:

• It must address the gap in knowledge.
• It must be significant to the extent that it contributes positively to the research
• It must help in further research
• The collected empirical data confirm the clarity and understandability of the research problem.
• It must be in the researcher’s interest should and suit his/her time, practical knowledge, research skills , and resources
• The problem-solving approach must be ethical
• Customary research methods can be applied

LEARN ABOUT: Theoretical Research

Components of a research problem

A research problem has the following components:

Research consumer

Research-consumers objective, alternative means to meet the objective, doubts in the selection of alternatives, there must be more than one environ­ment.

Here are the five basic steps to formulate a research problem:

Identify the broad research area

Divide the broad area into sub-areas.

• Profile of soccer players
• Profile of soccer clubs
• Level of soccer clubs
• Impact of the club on the city
• Revenue generating areas 
• Sponsors of the soccer clubs

Choose a sub-area

Formulate research questions, set research objectives.

Organizations and companies use marketing research problems to gauge the risks associated with launching a new product or service. They do not wish to spend money expanding a product line where research shows it will not succeed. A well-designed, well-executed marketing research study helps in identifying customer interests, consumer tastes, and preferences to help with decisions around the product or service.

A research question is the most important aspect of the research. You must spend time refining and assessing the research questions before getting started with the research activities. A research question must be straightforward, to the point, focused, and appropriately complex to capture the most relevant information.

Having difficulty writing research problems? Follow these examples to write a problem statement:

Incorrect: What are the effects of social media on people? Correct: What effect does use Facebook every day have on teenagers?

In the above example, the first research question is not specific enough to capture accurate feedback. Nobody knows what social media you’re talking about and what ‘people’ you’re referring to.

Let’s look at another marketing research problem example.

Incorrect: Who has a better healthcare system? The US or the UK? Correct: How do low-income earning people feel about the healthcare system, and how do the UK and the US compare?

The next research question is comprehensive and does not draw a definite conclusion about the healthcare systems of both countries.

The third example of how to write a problem statement is:

Incorrect: What will help political parties address the issues of low voter turnout? Correct: What communication strategies can political parties apply to increase voter turnout among people between the age of 25-30?

Again, comparing both statements, the second one is more direct and implies only a specific group of people, thus collecting actionable information.

Formulating a marketing research problem is just one crucial part of the research process. Another essential aspect of marketing research is using a robust market research software tool that aids in your research activity. 

For example, The Research methods knowledge base is a comprehensive web-based textbook that covers all the topics in a typical introductory undergraduate or graduate social research methods course. It covers the research question, measurement (surveys, scaling, qualitative, unobtrusive), research design (experimental and quasi-experimental research ), data analysis, and writing the research paper.

You can do a whole lot by choosing the right research platform to solve a specific problem. By using a  research repository , you can mitigate the need to think of research and a research problem as a decentralized process in your organization. 

Here are the benefits of using a robust research software tool

Powerful and efficient market research

Professional grade, powerful survey logic, collect unbiased data, data analysis, advanced analysis techniques, uncover brand insights.

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Here are the advantages of formulating a research problem:

Understanding the research procedure

Determining the research objective, design the research process, lays the foundation for research.

QuestionPro provides a number of tools and features to assist researchers in solving research problems, including:

• Survey creation:  QuestionPro offers to skip logic, branching, randomization, and a range of research question types.
• Data Collection:  QuestionPro lets researchers collect data through email, social media, and embedded surveys on websites.
• Real-time Data Analytics:  QuestionPro’s real-time data analytics solutions help researchers solve research issues. Researchers may quickly spot patterns and make data-driven decisions using the platform’s strong analytics tools.
• Collaboration:  Researchers can invite team members to surveys and exchange data and analytic results, making collaboration and task completion easy with QuestionPro.
• Integration with Other Tools:  QuestionPro integrates with a variety of other tools, including Salesforce, Hubspot, and Google Analytics.

QuestionPro provides a comprehensive set of research tools to assist researchers in solving research problems. QuestionPro provides a complete solution that can help researchers tackle their research problems with ease, from survey creation to data collection, real-time data analytics, collaboration, and integration with other tools. Contact QuestionPro right away to get the best value for your research process!

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10.2 Steps in the Marketing Research Process

Learning objective.

• Describe the basic steps in the marketing research process and the purpose of each step.

The basic steps used to conduct marketing research are shown in Figure 10.6 “Steps in the Marketing Research Process” . Next, we discuss each step.

Figure 10.6 Steps in the Marketing Research Process

Step 1: Define the Problem (or Opportunity)

There’s a saying in marketing research that a problem half defined is a problem half solved. Defining the “problem” of the research sounds simple, doesn’t it? Suppose your product is tutoring other students in a subject you’re a whiz at. You have been tutoring for a while, and people have begun to realize you’re darned good at it. Then, suddenly, your business drops off. Or it explodes, and you can’t cope with the number of students you’re being asked help. If the business has exploded, should you try to expand your services? Perhaps you should subcontract with some other “whiz” students. You would send them students to be tutored, and they would give you a cut of their pay for each student you referred to them.

Both of these scenarios would be a problem for you, wouldn’t they? They are problems insofar as they cause you headaches. But are they really the problem? Or are they the symptoms of something bigger? For example, maybe your business has dropped off because your school is experiencing financial trouble and has lowered the number of scholarships given to incoming freshmen. Consequently, there are fewer total students on campus who need your services. Conversely, if you’re swamped with people who want you to tutor them, perhaps your school awarded more scholarships than usual, so there are a greater number of students who need your services. Alternately, perhaps you ran an ad in your school’s college newspaper, and that led to the influx of students wanting you to tutor them.

Businesses are in the same boat you are as a tutor. They take a look at symptoms and try to drill down to the potential causes. If you approach a marketing research company with either scenario—either too much or too little business—the firm will seek more information from you such as the following:

• In what semester(s) did your tutoring revenues fall (or rise)?
• In what subject areas did your tutoring revenues fall (or rise)?
• In what sales channels did revenues fall (or rise): Were there fewer (or more) referrals from professors or other students? Did the ad you ran result in fewer (or more) referrals this month than in the past months?
• Among what demographic groups did your revenues fall (or rise)—women or men, people with certain majors, or first-year, second-, third-, or fourth-year students?

The key is to look at all potential causes so as to narrow the parameters of the study to the information you actually need to make a good decision about how to fix your business if revenues have dropped or whether or not to expand it if your revenues have exploded.

The next task for the researcher is to put into writing the research objective. The research objective is the goal(s) the research is supposed to accomplish. The marketing research objective for your tutoring business might read as follows:

To survey college professors who teach 100- and 200-level math courses to determine why the number of students referred for tutoring dropped in the second semester.

This is admittedly a simple example designed to help you understand the basic concept. If you take a marketing research course, you will learn that research objectives get a lot more complicated than this. The following is an example:

“To gather information from a sample representative of the U.S. population among those who are ‘very likely’ to purchase an automobile within the next 6 months, which assesses preferences (measured on a 1–5 scale ranging from ‘very likely to buy’ to ‘not likely at all to buy’) for the model diesel at three different price levels. Such data would serve as input into a forecasting model that would forecast unit sales, by geographic regions of the country, for each combination of the model’s different prices and fuel configurations (Burns & Bush, 2010).”

Now do you understand why defining the problem is complicated and half the battle? Many a marketing research effort is doomed from the start because the problem was improperly defined. Coke’s ill-fated decision to change the formula of Coca-Cola in 1985 is a case in point: Pepsi had been creeping up on Coke in terms of market share over the years as well as running a successful promotional campaign called the “Pepsi Challenge,” in which consumers were encouraged to do a blind taste test to see if they agreed that Pepsi was better. Coke spent four years researching “the problem.” Indeed, people seemed to like the taste of Pepsi better in blind taste tests. Thus, the formula for Coke was changed. But the outcry among the public was so great that the new formula didn’t last long—a matter of months—before the old formula was reinstated. Some marketing experts believe Coke incorrectly defined the problem as “How can we beat Pepsi in taste tests?” instead of “How can we gain market share against Pepsi?” (Burns & Bush, 2010)

New Coke Is It! 1985

(click to see video)

This video documents the Coca-Cola Company’s ill-fated launch of New Coke in 1985.

1985 Pepsi Commercial—“They Changed My Coke”

This video shows how Pepsi tried to capitalize on the blunder.

Step 2: Design the Research

The next step in the marketing research process is to do a research design. The research design is your “plan of attack.” It outlines what data you are going to gather and from whom, how and when you will collect the data, and how you will analyze it once it’s been obtained. Let’s look at the data you’re going to gather first.

There are two basic types of data you can gather. The first is primary data. Primary data is information you collect yourself, using hands-on tools such as interviews or surveys, specifically for the research project you’re conducting. Secondary data is data that has already been collected by someone else, or data you have already collected for another purpose. Collecting primary data is more time consuming, work intensive, and expensive than collecting secondary data. Consequently, you should always try to collect secondary data first to solve your research problem, if you can. A great deal of research on a wide variety of topics already exists. If this research contains the answer to your question, there is no need for you to replicate it. Why reinvent the wheel?

Sources of Secondary Data

Your company’s internal records are a source of secondary data. So are any data you collect as part of your marketing intelligence gathering efforts. You can also purchase syndicated research. Syndicated research is primary data that marketing research firms collect on a regular basis and sell to other companies. J.D. Power & Associates is a provider of syndicated research. The company conducts independent, unbiased surveys of customer satisfaction, product quality, and buyer behavior for various industries. The company is best known for its research in the automobile sector. One of the best-known sellers of syndicated research is the Nielsen Company, which produces the Nielsen ratings. The Nielsen ratings measure the size of television, radio, and newspaper audiences in various markets. You have probably read or heard about TV shows that get the highest (Nielsen) ratings. (Arbitron does the same thing for radio ratings.) Nielsen, along with its main competitor, Information Resources, Inc. (IRI), also sells businesses scanner-based research . Scanner-based research is information collected by scanners at checkout stands in stores. Each week Nielsen and IRI collect information on the millions of purchases made at stores. The companies then compile the information and sell it to firms in various industries that subscribe to their services. The Nielsen Company has also recently teamed up with Facebook to collect marketing research information. Via Facebook, users will see surveys in some of the spaces in which they used to see online ads (Rappeport, Gelles, 2009).

By contrast, MarketResearch.com is an example of a marketing research aggregator. A marketing research aggregator is a marketing research company that doesn’t conduct its own research and sell it. Instead, it buys research reports from other marketing research companies and then sells the reports in their entirety or in pieces to other firms. Check out MarketResearch.com’s Web site. As you will see there are a huge number of studies in every category imaginable that you can buy for relatively small amounts of money.

Figure 10.7

Market research aggregators buy research reports from other marketing research companies and then resell them in part or in whole to other companies so they don’t have to gather primary data.

Source: http://www.marketresearch.com .

Your local library is a good place to gather free secondary data. It has searchable databases as well as handbooks, dictionaries, and books, some of which you can access online. Government agencies also collect and report information on demographics, economic and employment data, health information, and balance-of-trade statistics, among a lot of other information. The U.S. Census Bureau collects census data every ten years to gather information about who lives where. Basic demographic information about sex, age, race, and types of housing in which people live in each U.S. state, metropolitan area, and rural area is gathered so that population shifts can be tracked for various purposes, including determining the number of legislators each state should have in the U.S. House of Representatives. For the U.S. government, this is primary data. For marketing managers it is an important source of secondary data.

The Survey Research Center at the University of Michigan also conducts periodic surveys and publishes information about trends in the United States. One research study the center continually conducts is called the “Changing Lives of American Families” ( http://www.isr.umich.edu/home/news/research-update/2007-01.pdf ). This is important research data for marketing managers monitoring consumer trends in the marketplace. The World Bank and the United Nations are two international organizations that collect a great deal of information. Their Web sites contain many free research studies and data related to global markets. Table 10.1 “Examples of Primary Data Sources versus Secondary Data Sources” shows some examples of primary versus secondary data sources.

Table 10.1 Examples of Primary Data Sources versus Secondary Data Sources

Gauging the Quality of Secondary Data

When you are gathering secondary information, it’s always good to be a little skeptical of it. Sometimes studies are commissioned to produce the result a client wants to hear—or wants the public to hear. For example, throughout the twentieth century, numerous studies found that smoking was good for people’s health. The problem was the studies were commissioned by the tobacco industry. Web research can also pose certain hazards. There are many biased sites that try to fool people that they are providing good data. Often the data is favorable to the products they are trying to sell. Beware of product reviews as well. Unscrupulous sellers sometimes get online and create bogus ratings for products. See below for questions you can ask to help gauge the credibility of secondary information.

Gauging the Credibility of Secondary Data: Questions to Ask

• Who gathered this information?
• For what purpose?
• What does the person or organization that gathered the information have to gain by doing so?
• Was the information gathered and reported in a systematic manner?
• Is the source of the information accepted as an authority by other experts in the field?
• Does the article provide objective evidence to support the position presented?

Types of Research Design

Now let’s look specifically at the types of research designs that are utilized. By understanding different types of research designs, a researcher can solve a client’s problems more quickly and efficiently without jumping through more hoops than necessary. Research designs fall into one of the following three categories:

• Exploratory research design
• Descriptive research design
• Causal research design (experiments)

An exploratory research design is useful when you are initially investigating a problem but you haven’t defined it well enough to do an in-depth study of it. Perhaps via your regular market intelligence, you have spotted what appears to be a new opportunity in the marketplace. You would then do exploratory research to investigate it further and “get your feet wet,” as the saying goes. Exploratory research is less structured than other types of research, and secondary data is often utilized.

One form of exploratory research is qualitative research. Qualitative research is any form of research that includes gathering data that is not quantitative, and often involves exploring questions such as why as much as what or how much . Different forms, such as depth interviews and focus group interviews, are common in marketing research.

The depth interview —engaging in detailed, one-on-one, question-and-answer sessions with potential buyers—is an exploratory research technique. However, unlike surveys, the people being interviewed aren’t asked a series of standard questions. Instead the interviewer is armed with some general topics and asks questions that are open ended, meaning that they allow the interviewee to elaborate. “How did you feel about the product after you purchased it?” is an example of a question that might be asked. A depth interview also allows a researcher to ask logical follow-up questions such as “Can you tell me what you mean when you say you felt uncomfortable using the service?” or “Can you give me some examples?” to help dig further and shed additional light on the research problem. Depth interviews can be conducted in person or over the phone. The interviewer either takes notes or records the interview.

Focus groups and case studies are often utilized for exploratory research as well. A focus group is a group of potential buyers who are brought together to discuss a marketing research topic with one another. A moderator is used to focus the discussion, the sessions are recorded, and the main points of consensus are later summarized by the market researcher. Textbook publishers often gather groups of professors at educational conferences to participate in focus groups. However, focus groups can also be conducted on the telephone, in online chat rooms, or both, using meeting software like WebEx. The basic steps of conducting a focus group are outlined below.

The Basic Steps of Conducting a Focus Group

• Establish the objectives of the focus group. What is its purpose?
• Identify the people who will participate in the focus group. What makes them qualified to participate? How many of them will you need and what they will be paid?
• Obtain contact information for the participants and send out invitations (usually e-mails are most efficient).
• Develop a list of questions.
• Choose a facilitator.
• Choose a location in which to hold the focus group and the method by which it will be recorded.
• Conduct the focus group. If the focus group is not conducted electronically, include name tags for the participants, pens and notepads, any materials the participants need to see, and refreshments. Record participants’ responses.
• Summarize the notes from the focus group and write a report for management.

A case study looks at how another company solved the problem that’s being researched. Sometimes multiple cases, or companies, are used in a study. Case studies nonetheless have a mixed reputation. Some researchers believe it’s hard to generalize, or apply, the results of a case study to other companies. Nonetheless, collecting information about companies that encountered the same problems your firm is facing can give you a certain amount of insight about what direction you should take. In fact, one way to begin a research project is to carefully study a successful product or service.

Two other types of qualitative data used for exploratory research are ethnographies and projective techniques. In an ethnography , researchers interview, observe, and often videotape people while they work, live, shop, and play. The Walt Disney Company has recently begun using ethnographers to uncover the likes and dislikes of boys aged six to fourteen, a financially attractive market segment for Disney, but one in which the company has been losing market share. The ethnographers visit the homes of boys, observe the things they have in their rooms to get a sense of their hobbies, and accompany them and their mothers when they shop to see where they go, what the boys are interested in, and what they ultimately buy. (The children get seventy-five dollars out of the deal, incidentally.) (Barnes, 2009)

Projective techniques are used to reveal information research respondents might not reveal by being asked directly. Asking a person to complete sentences such as the following is one technique:

People who buy Coach handbags __________.

(Will he or she reply with “are cool,” “are affluent,” or “are pretentious,” for example?)

KFC’s grilled chicken is ______.

Or the person might be asked to finish a story that presents a certain scenario. Word associations are also used to discern people’s underlying attitudes toward goods and services. Using a word-association technique, a market researcher asks a person to say or write the first word that comes to his or her mind in response to another word. If the initial word is “fast food,” what word does the person associate it with or respond with? Is it “McDonald’s”? If many people reply that way, and you’re conducting research for Burger King, that could indicate Burger King has a problem. However, if the research is being conducted for Wendy’s, which recently began running an advertising campaign to the effect that Wendy’s offerings are “better than fast food,” it could indicate that the campaign is working.

Completing cartoons is yet another type of projective technique. It’s similar to finishing a sentence or story, only with the pictures. People are asked to look at a cartoon such as the one shown in Figure 10.8 “Example of a Cartoon-Completion Projective Technique” . One of the characters in the picture will have made a statement, and the person is asked to fill in the empty cartoon “bubble” with how they think the second character will respond.

Figure 10.8 Example of a Cartoon-Completion Projective Technique

In some cases, your research might end with exploratory research. Perhaps you have discovered your organization lacks the resources needed to produce the product. In other cases, you might decide you need more in-depth, quantitative research such as descriptive research or causal research, which are discussed next. Most marketing research professionals advise using both types of research, if it’s feasible. On the one hand, the qualitative-type research used in exploratory research is often considered too “lightweight.” Remember earlier in the chapter when we discussed telephone answering machines and the hit TV sitcom Seinfeld ? Both product ideas were initially rejected by focus groups. On the other hand, relying solely on quantitative information often results in market research that lacks ideas.

The Stone Wheel—What One Focus Group Said

Watch the video to see a funny spoof on the usefulness—or lack of usefulness—of focus groups.

Descriptive Research

Anything that can be observed and counted falls into the category of descriptive research design. A study using a descriptive research design involves gathering hard numbers, often via surveys, to describe or measure a phenomenon so as to answer the questions of who , what , where , when , and how . “On a scale of 1–5, how satisfied were you with your service?” is a question that illustrates the information a descriptive research design is supposed to capture.

Physiological measurements also fall into the category of descriptive design. Physiological measurements measure people’s involuntary physical responses to marketing stimuli, such as an advertisement. Elsewhere, we explained that researchers have gone so far as to scan the brains of consumers to see what they really think about products versus what they say about them. Eye tracking is another cutting-edge type of physiological measurement. It involves recording the movements of a person’s eyes when they look at some sort of stimulus, such as a banner ad or a Web page. The Walt Disney Company has a research facility in Austin, Texas, that it uses to take physical measurements of viewers when they see Disney programs and advertisements. The facility measures three types of responses: people’s heart rates, skin changes, and eye movements (eye tracking) (Spangler, 2009).

Figure 10.9

A woman shows off her headgear for an eye-tracking study. The gear’s not exactly a fashion statement but . . .

lawrencegs – Google Glass – CC BY 2.0.

A strictly descriptive research design instrument—a survey, for example—can tell you how satisfied your customers are. It can’t, however, tell you why. Nor can an eye-tracking study tell you why people’s eyes tend to dwell on certain types of banner ads—only that they do. To answer “why” questions an exploratory research design or causal research design is needed (Wagner, 2007).

Causal Research

Causal research design examines cause-and-effect relationships. Using a causal research design allows researchers to answer “what if” types of questions. In other words, if a firm changes X (say, a product’s price, design, placement, or advertising), what will happen to Y (say, sales or customer loyalty)? To conduct causal research, the researcher designs an experiment that “controls,” or holds constant, all of a product’s marketing elements except one (or using advanced techniques of research, a few elements can be studied at the same time). The one variable is changed, and the effect is then measured. Sometimes the experiments are conducted in a laboratory using a simulated setting designed to replicate the conditions buyers would experience. Or the experiments may be conducted in a virtual computer setting.

You might think setting up an experiment in a virtual world such as the online game Second Life would be a viable way to conduct controlled marketing research. Some companies have tried to use Second Life for this purpose, but the results have been somewhat mixed as to whether or not it is a good medium for marketing research. The German marketing research firm Komjuniti was one of the first “real-world” companies to set up an “island” in Second Life upon which it could conduct marketing research. However, with so many other attractive fantasy islands in which to play, the company found it difficult to get Second Life residents, or players, to voluntarily visit the island and stay long enough so meaningful research could be conducted. (Plus, the “residents,” or players, in Second Life have been known to protest corporations invading their world. When the German firm Komjuniti created an island in Second Life to conduct marketing research, the residents showed up waving signs and threatening to boycott the island.) (Wagner, 2007)

Why is being able to control the setting so important? Let’s say you are an American flag manufacturer and you are working with Walmart to conduct an experiment to see where in its stores American flags should be placed so as to increase their sales. Then the terrorist attacks of 9/11 occur. In the days afterward, sales skyrocketed—people bought flags no matter where they were displayed. Obviously, the terrorist attacks in the United States would have skewed the experiment’s data.

An experiment conducted in a natural setting such as a store is referred to as a field experiment . Companies sometimes do field experiments either because it is more convenient or because they want to see if buyers will behave the same way in the “real world” as in a laboratory or on a computer. The place the experiment is conducted or the demographic group of people the experiment is administered to is considered the test market . Before a large company rolls out a product to the entire marketplace, it will often place the offering in a test market to see how well it will be received. For example, to compete with MillerCoors’ sixty-four-calorie beer MGD 64, Anheuser-Busch recently began testing its Select 55 beer in certain cities around the country (McWilliams, 2009).

Figure 10.10

Select 55 beer: Coming soon to a test market near you? (If you’re on a diet, you have to hope so!)

Martine – Le champagne – CC BY-NC 2.0.

Many companies use experiments to test all of their marketing communications. For example, the online discount retailer O.co (formerly called Overstock.com) carefully tests all of its marketing offers and tracks the results of each one. One study the company conducted combined twenty-six different variables related to offers e-mailed to several thousand customers. The study resulted in a decision to send a group of e-mails to different segments. The company then tracked the results of the sales generated to see if they were in line with the earlier experiment it had conducted that led it to make the offer.

Step 3: Design the Data-Collection Forms

If the behavior of buyers is being formally observed, and a number of different researchers are conducting observations, the data obviously need to be recorded on a standardized data-collection form that’s either paper or electronic. Otherwise, the data collected will not be comparable. The items on the form could include a shopper’s sex; his or her approximate age; whether the person seemed hurried, moderately hurried, or unhurried; and whether or not he or she read the label on products, used coupons, and so forth.

The same is true when it comes to surveying people with questionnaires. Surveying people is one of the most commonly used techniques to collect quantitative data. Surveys are popular because they can be easily administered to large numbers of people fairly quickly. However, to produce the best results, the questionnaire for the survey needs to be carefully designed.

Questionnaire Design

Most questionnaires follow a similar format: They begin with an introduction describing what the study is for, followed by instructions for completing the questionnaire and, if necessary, returning it to the market researcher. The first few questions that appear on the questionnaire are usually basic, warm-up type of questions the respondent can readily answer, such as the respondent’s age, level of education, place of residence, and so forth. The warm-up questions are then followed by a logical progression of more detailed, in-depth questions that get to the heart of the question being researched. Lastly, the questionnaire wraps up with a statement that thanks the respondent for participating in the survey and information and explains when and how they will be paid for participating. To see some examples of questionnaires and how they are laid out, click on the following link: http://cas.uah.edu/wrenb/mkt343/Project/Sample%20Questionnaires.htm .

How the questions themselves are worded is extremely important. It’s human nature for respondents to want to provide the “correct” answers to the person administering the survey, so as to seem agreeable. Therefore, there is always a hazard that people will try to tell you what you want to hear on a survey. Consequently, care needs to be taken that the survey questions are written in an unbiased, neutral way. In other words, they shouldn’t lead a person taking the questionnaire to answer a question one way or another by virtue of the way you have worded it. The following is an example of a leading question.

Don’t you agree that teachers should be paid more ?

The questions also need to be clear and unambiguous. Consider the following question:

Which brand of toothpaste do you use ?

The question sounds clear enough, but is it really? What if the respondent recently switched brands? What if she uses Crest at home, but while away from home or traveling, she uses Colgate’s Wisp portable toothpaste-and-brush product? How will the respondent answer the question? Rewording the question as follows so it’s more specific will help make the question clearer:

Which brand of toothpaste have you used at home in the past six months? If you have used more than one brand, please list each of them 1 .

Sensitive questions have to be asked carefully. For example, asking a respondent, “Do you consider yourself a light, moderate, or heavy drinker?” can be tricky. Few people want to admit to being heavy drinkers. You can “soften” the question by including a range of answers, as the following example shows:

How many alcoholic beverages do you consume in a week ?

• __0–5 alcoholic beverages
• __5–10 alcoholic beverages
• __10–15 alcoholic beverages

Many people don’t like to answer questions about their income levels. Asking them to specify income ranges rather than divulge their actual incomes can help.

Other research question “don’ts” include using jargon and acronyms that could confuse people. “How often do you IM?” is an example. Also, don’t muddy the waters by asking two questions in the same question, something researchers refer to as a double-barreled question . “Do you think parents should spend more time with their children and/or their teachers?” is an example of a double-barreled question.

Open-ended questions , or questions that ask respondents to elaborate, can be included. However, they are harder to tabulate than closed-ended questions , or questions that limit a respondent’s answers. Multiple-choice and yes-and-no questions are examples of closed-ended questions.

Testing the Questionnaire

You have probably heard the phrase “garbage in, garbage out.” If the questions are bad, the information gathered will be bad, too. One way to make sure you don’t end up with garbage is to test the questionnaire before sending it out to find out if there are any problems with it. Is there enough space for people to elaborate on open-ended questions? Is the font readable? To test the questionnaire, marketing research professionals first administer it to a number of respondents face to face. This gives the respondents the chance to ask the researcher about questions or instructions that are unclear or don’t make sense to them. The researcher then administers the questionnaire to a small subset of respondents in the actual way the survey is going to be disseminated, whether it’s delivered via phone, in person, by mail, or online.

Getting people to participate and complete questionnaires can be difficult. If the questionnaire is too long or hard to read, many people won’t complete it. So, by all means, eliminate any questions that aren’t necessary. Of course, including some sort of monetary incentive for completing the survey can increase the number of completed questionnaires a market researcher will receive.

Step 4: Specify the Sample

Once you have created your questionnaire or other marketing study, how do you figure out who should participate in it? Obviously, you can’t survey or observe all potential buyers in the marketplace. Instead, you must choose a sample. A sample is a subset of potential buyers that are representative of your entire target market, or population being studied. Sometimes market researchers refer to the population as the universe to reflect the fact that it includes the entire target market, whether it consists of a million people, a hundred thousand, a few hundred, or a dozen. “All unmarried people over the age of eighteen who purchased Dirt Devil steam cleaners in the United States during 2011” is an example of a population that has been defined.

Obviously, the population has to be defined correctly. Otherwise, you will be studying the wrong group of people. Not defining the population correctly can result in flawed research, or sampling error. A sampling error is any type of marketing research mistake that results because a sample was utilized. One criticism of Internet surveys is that the people who take these surveys don’t really represent the overall population. On average, Internet survey takers tend to be more educated and tech savvy. Consequently, if they solely constitute your population, even if you screen them for certain criteria, the data you collect could end up being skewed.

The next step is to put together the sampling frame , which is the list from which the sample is drawn. The sampling frame can be put together using a directory, customer list, or membership roster (Wrenn et. al., 2007). Keep in mind that the sampling frame won’t perfectly match the population. Some people will be included on the list who shouldn’t be. Other people who should be included will be inadvertently omitted. It’s no different than if you were to conduct a survey of, say, 25 percent of your friends, using friends’ names you have in your cell phone. Most of your friends’ names are likely to be programmed into your phone, but not all of them. As a result, a certain degree of sampling error always occurs.

There are two main categories of samples in terms of how they are drawn: probability samples and nonprobability samples. A probability sample is one in which each would-be participant has a known and equal chance of being selected. The chance is known because the total number of people in the sampling frame is known. For example, if every other person from the sampling frame were chosen, each person would have a 50 percent chance of being selected.

A nonprobability sample is any type of sample that’s not drawn in a systematic way. So the chances of each would-be participant being selected can’t be known. A convenience sample is one type of nonprobability sample. It is a sample a researcher draws because it’s readily available and convenient to do so. Surveying people on the street as they pass by is an example of a convenience sample. The question is, are these people representative of the target market?

For example, suppose a grocery store needed to quickly conduct some research on shoppers to get ready for an upcoming promotion. Now suppose that the researcher assigned to the project showed up between the hours of 10 a.m. and 12 p.m. on a weekday and surveyed as many shoppers as possible. The problem is that the shoppers wouldn’t be representative of the store’s entire target market. What about commuters who stop at the store before and after work? Their views wouldn’t be represented. Neither would people who work the night shift or shop at odd hours. As a result, there would be a lot of room for sampling error in this study. For this reason, studies that use nonprobability samples aren’t considered as accurate as studies that use probability samples. Nonprobability samples are more often used in exploratory research.

Lastly, the size of the sample has an effect on the amount of sampling error. Larger samples generally produce more accurate results. The larger your sample is, the more data you will have, which will give you a more complete picture of what you’re studying. However, the more people surveyed or studied, the more costly the research becomes.

Statistics can be used to determine a sample’s optimal size. If you take a marketing research or statistics class, you will learn more about how to determine the optimal size.

Of course, if you hire a marketing research company, much of this work will be taken care of for you. Many marketing research companies, like ResearchNow, maintain panels of prescreened people they draw upon for samples. In addition, the marketing research firm will be responsible for collecting the data or contracting with a company that specializes in data collection. Data collection is discussed next.

Step 5: Collect the Data

As we have explained, primary marketing research data can be gathered in a number of ways. Surveys, taking physical measurements, and observing people are just three of the ways we discussed. If you’re observing customers as part of gathering the data, keep in mind that if shoppers are aware of the fact, it can have an effect on their behavior. For example, if a customer shopping for feminine hygiene products in a supermarket aisle realizes she is being watched, she could become embarrassed and leave the aisle, which would adversely affect your data. To get around problems such as these, some companies set up cameras or two-way mirrors to observe customers. Organizations also hire mystery shoppers to work around the problem. A mystery shopper is someone who is paid to shop at a firm’s establishment or one of its competitors to observe the level of service, cleanliness of the facility, and so forth, and report his or her findings to the firm.

Make Extra Money as a Mystery Shopper

Watch the YouTube video to get an idea of how mystery shopping works.

Survey data can be collected in many different ways and combinations of ways. The following are the basic methods used:

• Face-to-face (can be computer aided)
• Telephone (can be computer aided or completely automated)
• Mail and hand delivery
• E-mail and the Web

A face-to-face survey is, of course, administered by a person. The surveys are conducted in public places such as in shopping malls, on the street, or in people’s homes if they have agreed to it. In years past, it was common for researchers in the United States to knock on people’s doors to gather survey data. However, randomly collected door-to-door interviews are less common today, partly because people are afraid of crime and are reluctant to give information to strangers (McDaniel & Gates, 1998).

Nonetheless, “beating the streets” is still a legitimate way questionnaire data is collected. When the U.S. Census Bureau collects data on the nation’s population, it hand delivers questionnaires to rural households that do not have street-name and house-number addresses. And Census Bureau workers personally survey the homeless to collect information about their numbers. Face-to-face surveys are also commonly used in third world countries to collect information from people who cannot read or lack phones and computers.

A plus of face-to-face surveys is that they allow researchers to ask lengthier, more complex questions because the people being surveyed can see and read the questionnaires. The same is true when a computer is utilized. For example, the researcher might ask the respondent to look at a list of ten retail stores and rank the stores from best to worst. The same question wouldn’t work so well over the telephone because the person couldn’t see the list. The question would have to be rewritten. Another drawback with telephone surveys is that even though federal and state “do not call” laws generally don’t prohibit companies from gathering survey information over the phone, people often screen such calls using answering machines and caller ID.

Probably the biggest drawback of both surveys conducted face-to-face and administered over the phone by a person is that they are labor intensive and therefore costly. Mailing out questionnaires is costly, too, and the response rates can be rather low. Think about why that might be so: if you receive a questionnaire in the mail, it is easy to throw it in the trash; it’s harder to tell a market researcher who approaches you on the street that you don’t want to be interviewed.

By contrast, gathering survey data collected by a computer, either over the telephone or on the Internet, can be very cost-effective and in some cases free. SurveyMonkey and Zoomerang are two Web sites that will allow you to create online questionnaires, e-mail them to up to one hundred people for free, and view the responses in real time as they come in. For larger surveys, you have to pay a subscription price of a few hundred dollars. But that still can be extremely cost-effective. The two Web sites also have a host of other features such as online-survey templates you can use to create your questionnaire, a way to set up automatic reminders sent to people who haven’t yet completed their surveys, and tools you can use to create graphics to put in your final research report. To see how easy it is to put together a survey in SurveyMonkey, click on the following link: http://help.surveymonkey.com/app/tutorials/detail/a_id/423 .

Like a face-to-face survey, an Internet survey can enable you to show buyers different visuals such as ads, pictures, and videos of products and their packaging. Web surveys are also fast, which is a major plus. Whereas face-to-face and mailed surveys often take weeks to collect, you can conduct a Web survey in a matter of days or even hours. And, of course, because the information is electronically gathered it can be automatically tabulated. You can also potentially reach a broader geographic group than you could if you had to personally interview people. The Zoomerang Web site allows you to create surveys in forty different languages.

Another plus for Web and computer surveys (and electronic phone surveys) is that there is less room for human error because the surveys are administered electronically. For instance, there’s no risk that the interviewer will ask a question wrong or use a tone of voice that could mislead the respondents. Respondents are also likely to feel more comfortable inputting the information into a computer if a question is sensitive than they would divulging the information to another person face-to-face or over the phone. Given all of these advantages, it’s not surprising that the Internet is quickly becoming the top way to collect primary data. However, like mail surveys, surveys sent to people over the Internet are easy to ignore.

Lastly, before the data collection process begins, the surveyors and observers need to be trained to look for the same things, ask questions the same way, and so forth. If they are using rankings or rating scales, they need to be “on the same page,” so to speak, as to what constitutes a high ranking or a low ranking. As an analogy, you have probably had some teachers grade your college papers harder than others. The goal of training is to avoid a wide disparity between how different observers and interviewers record the data.

Figure 10.11

Training people so they know what constitutes different ratings when they are collecting data will improve the quality of the information gathered in a marketing research study.

Ricardo Rodriquez – Satisfaction survey – CC BY-NC-ND 2.0.

For example, if an observation form asks the observers to describe whether a shopper’s behavior is hurried, moderately hurried, or unhurried, they should be given an idea of what defines each rating. Does it depend on how much time the person spends in the store or in the individual aisles? How fast they walk? In other words, the criteria and ratings need to be spelled out.

Collecting International Marketing Research Data

Gathering marketing research data in foreign countries poses special challenges. However, that doesn’t stop firms from doing so. Marketing research companies are located all across the globe, in fact. Eight of the ten largest marketing research companies in the world are headquartered in the United States. However, five of these eight firms earn more of their revenues abroad than they do in the United States. There’s a reason for this: many U.S. markets were saturated, or tapped out, long ago in terms of the amount that they can grow. Coke is an example. As you learned earlier in the book, most of the Coca-Cola Company’s revenues are earned in markets abroad. To be sure, the United States is still a huge market when it comes to the revenues marketing research firms generate by conducting research in the country: in terms of their spending, American consumers fuel the world’s economic engine. Still, emerging countries with growing middle classes, such as China, India, and Brazil, are hot new markets companies want to tap.

What kind of challenges do firms face when trying to conduct marketing research abroad? As we explained, face-to-face surveys are commonly used in third world countries to collect information from people who cannot read or lack phones and computers. However, face-to-face surveys are also common in Europe, despite the fact that phones and computers are readily available. In-home surveys are also common in parts of Europe. By contrast, in some countries, including many Asian countries, it’s considered taboo or rude to try to gather information from strangers either face-to-face or over the phone. In many Muslim countries, women are forbidden to talk to strangers.

And how do you figure out whom to research in foreign countries? That in itself is a problem. In the United States, researchers often ask if they can talk to the heads of households to conduct marketing research. But in countries in which domestic servants or employees are common, the heads of households aren’t necessarily the principal shoppers; their domestic employees are (Malhotra).

Translating surveys is also an issue. Have you ever watched the TV comedians Jay Leno and David Letterman make fun of the English translations found on ethnic menus and products? Research tools such as surveys can suffer from the same problem. Hiring someone who is bilingual to translate a survey into another language can be a disaster if the person isn’t a native speaker of the language to which the survey is being translated.

One way companies try to deal with translation problems is by using back translation. When back translation is used, a native speaker translates the survey into the foreign language and then translates it back again to the original language to determine if there were gaps in meaning—that is, if anything was lost in translation. And it’s not just the language that’s an issue. If the research involves any visual images, they, too, could be a point of confusion. Certain colors, shapes, and symbols can have negative connotations in other countries. For example, the color white represents purity in many Western cultures, but in China, it is the color of death and mourning (Zouhali-Worrall, 2008). Also, look back at the cartoon-completion exercise in Figure 10.8 “Example of a Cartoon-Completion Projective Technique” . What would women in Muslim countries who aren’t allowed to converse with male sellers think of it? Chances are, the cartoon wouldn’t provide you with the information you’re seeking if Muslim women in some countries were asked to complete it.

One way marketing research companies are dealing with the complexities of global research is by merging with or acquiring marketing research companies abroad. The Nielsen Company is the largest marketing research company in the world. The firm operates in more than a hundred countries and employs more than forty thousand people. Many of its expansions have been the result of acquisitions and mergers.

Step 6: Analyze the Data

Step 6 involves analyzing the data to ensure it’s as accurate as possible. If the research is collected by hand using a pen and pencil, it’s entered into a computer. Or respondents might have already entered the information directly into a computer. For example, when Toyota goes to an event such as a car show, the automaker’s marketing personnel ask would-be buyers to complete questionnaires directly on computers. Companies are also beginning to experiment with software that can be used to collect data using mobile phones.

Once all the data is collected, the researchers begin the data cleaning , which is the process of removing data that have accidentally been duplicated (entered twice into the computer) or correcting data that have obviously been recorded wrong. A program such as Microsoft Excel or a statistical program such as Predictive Analytics Software (PASW, which was formerly known as SPSS) is then used to tabulate, or calculate, the basic results of the research, such as the total number of participants and how collectively they answered various questions. The programs can also be used to calculate averages, such as the average age of respondents, their average satisfaction, and so forth. The same can done for percentages, and other values you learned about, or will learn about, in a statistics course, such as the standard deviation, mean, and median for each question.

The information generated by the programs can be used to draw conclusions, such as what all customers might like or not like about an offering based on what the sample group liked or did not like. The information can also be used to spot differences among groups of people. For example, the research might show that people in one area of the country like the product better than people in another area. Trends to predict what might happen in the future can also be spotted.

If there are any open-ended questions respondents have elaborated upon—for example, “Explain why you like the current brand you use better than any other brand”—the answers to each are pasted together, one on top of another, so researchers can compare and summarize the information. As we have explained, qualitative information such as this can give you a fuller picture of the results of the research.

Part of analyzing the data is to see if it seems sound. Does the way in which the research was conducted seem sound? Was the sample size large enough? Are the conclusions that become apparent from it reasonable?

The two most commonly used criteria used to test the soundness of a study are (1) validity and (2) reliability. A study is valid if it actually tested what it was designed to test. For example, did the experiment you ran in Second Life test what it was designed to test? Did it reflect what could really happen in the real world? If not, the research isn’t valid. If you were to repeat the study, and get the same results (or nearly the same results), the research is said to be reliable . If you get a drastically different result if you repeat the study, it’s not reliable. The data collected, or at least some it, can also be compared to, or reconciled with, similar data from other sources either gathered by your firm or by another organization to see if the information seems on target.

Stage 7: Write the Research Report and Present Its Findings

If you end up becoming a marketing professional and conducting a research study after you graduate, hopefully you will do a great job putting the study together. You will have defined the problem correctly, chosen the right sample, collected the data accurately, analyzed it, and your findings will be sound. At that point, you will be required to write the research report and perhaps present it to an audience of decision makers. You will do so via a written report and, in some cases, a slide or PowerPoint presentation based on your written report.

The six basic elements of a research report are as follows.

• Title Page . The title page explains what the report is about, when it was conducted and by whom, and who requested it.
• Table of Contents . The table of contents outlines the major parts of the report, as well as any graphs and charts, and the page numbers on which they can be found.
• Executive Summary . The executive summary summarizes all the details in the report in a very quick way. Many people who receive the report—both executives and nonexecutives—won’t have time to read the entire report. Instead, they will rely on the executive summary to quickly get an idea of the study’s results and what to do about those results.

Methodology and Limitations . The methodology section of the report explains the technical details of how the research was designed and conducted. The section explains, for example, how the data was collected and by whom, the size of the sample, how it was chosen, and whom or what it consisted of (e.g., the number of women versus men or children versus adults). It also includes information about the statistical techniques used to analyze the data.

Every study has errors—sampling errors, interviewer errors, and so forth. The methodology section should explain these details, so decision makers can consider their overall impact. The margin of error is the overall tendency of the study to be off kilter—that is, how far it could have gone wrong in either direction. Remember how newscasters present the presidential polls before an election? They always say, “This candidate is ahead 48 to 44 percent, plus or minus 2 percent.” That “plus or minus” is the margin of error. The larger the margin of error is, the less likely the results of the study are accurate. The margin of error needs to be included in the methodology section.

• Findings . The findings section is a longer, fleshed-out version of the executive summary that goes into more detail about the statistics uncovered by the research that bolster the study’s findings. If you have related research or secondary data on hand that back up the findings, it can be included to help show the study did what it was designed to do.
• Recommendations . The recommendations section should outline the course of action you think should be taken based on the findings of the research and the purpose of the project. For example, if you conducted a global market research study to identify new locations for stores, make a recommendation for the locations (Mersdorf, 2009).

As we have said, these are the basic sections of a marketing research report. However, additional sections can be added as needed. For example, you might need to add a section on the competition and each firm’s market share. If you’re trying to decide on different supply chain options, you will need to include a section on that topic.

As you write the research report, keep your audience in mind. Don’t use technical jargon decision makers and other people reading the report won’t understand. If technical terms must be used, explain them. Also, proofread the document to ferret out any grammatical errors and typos, and ask a couple of other people to proofread behind you to catch any mistakes you might have missed. If your research report is riddled with errors, its credibility will be undermined, even if the findings and recommendations you make are extremely accurate.

Many research reports are presented via PowerPoint. If you’re asked to create a slideshow presentation from the report, don’t try to include every detail in the report on the slides. The information will be too long and tedious for people attending the presentation to read through. And if they do go to the trouble of reading all the information, they probably won’t be listening to the speaker who is making the presentation.

Instead of including all the information from the study in the slides, boil each section of the report down to key points and add some “talking points” only the presenter will see. After or during the presentation, you can give the attendees the longer, paper version of the report so they can read the details at a convenient time, if they choose to.

Key Takeaway

Step 1 in the marketing research process is to define the problem. Businesses take a look at what they believe are symptoms and try to drill down to the potential causes so as to precisely define the problem. The next task for the researcher is to put into writing the research objective, or goal, the research is supposed to accomplish. Step 2 in the process is to design the research. The research design is the “plan of attack.” It outlines what data you are going to gather, from whom, how, and when, and how you’re going to analyze it once it has been obtained. Step 3 is to design the data-collection forms, which need to be standardized so the information gathered on each is comparable. Surveys are a popular way to gather data because they can be easily administered to large numbers of people fairly quickly. However, to produce the best results, survey questionnaires need to be carefully designed and pretested before they are used. Step 4 is drawing the sample, or a subset of potential buyers who are representative of your entire target market. If the sample is not correctly selected, the research will be flawed. Step 5 is to actually collect the data, whether it’s collected by a person face-to-face, over the phone, or with the help of computers or the Internet. The data-collection process is often different in foreign countries. Step 6 is to analyze the data collected for any obvious errors, tabulate the data, and then draw conclusions from it based on the results. The last step in the process, Step 7, is writing the research report and presenting the findings to decision makers.

Review Questions

• Explain why it’s important to carefully define the problem or opportunity a marketing research study is designed to investigate.
• Describe the different types of problems that can occur when marketing research professionals develop questions for surveys.
• How does a probability sample differ from a nonprobability sample?
• What makes a marketing research study valid? What makes a marketing research study reliable?
• What sections should be included in a marketing research report? What is each section designed to do?

1 “Questionnaire Design,” QuickMBA , http://www.quickmba.com/marketing/research/qdesign (accessed December 14, 2009).

Barnes, B., “Disney Expert Uses Science to Draw Boy Viewers,” New York Times , April 15, 2009, http://www.nytimes.com/2009/04/14/arts/television/14boys.html?pagewanted=1&_r=1 (accessed December 14, 2009).

Burns A. and Ronald Bush, Marketing Research , 6th ed. (Upper Saddle River, NJ: Prentice Hall, 2010), 85.

Malhotra, N., Marketing Research: An Applied Approach , 6th ed. (Upper Saddle River, NJ: Prentice Hall), 764.

McDaniel, C. D. and Roger H. Gates, Marketing Research Essentials , 2nd ed. (Cincinnati: South-Western College Publishing, 1998), 61.

McWilliams, J., “A-B Puts Super-Low-Calorie Beer in Ring with Miller,” St. Louis Post-Dispatch , August 16, 2009, http://www.stltoday.com/business/next-matchup-light-weights-a-b-puts-super-low-calorie/article_47511bfe-18ca-5979-bdb9-0526c97d4edf.html (accessed April 13, 2012).

Mersdorf, S., “How to Organize Your Next Survey Report,” Cvent , August 24, 2009, http://survey.cvent.com/blog/cvent-survey/0/0/how-to-organize-your-next-survey-report (accessed December 14, 2009).

Rappeport A. and David Gelles, “Facebook to Form Alliance with Nielsen,” Financial Times , September 23, 2009, 16.

Spangler, T., “Disney Lab Tracks Feelings,” Multichannel News 30, no. 30 (August 3, 2009): 26.

Wagner, J., “Marketing in Second Life Doesn’t Work…Here Is Why!” GigaOM , April 4, 2007, http://gigaom.com/2007/04/04/3-reasons-why-marketing-in-second-life-doesnt-work (accessed December 14, 2009).

Wrenn, B., Robert E. Stevens, and David L. Loudon, Marketing Research: Text and Cases , 2nd ed. (Binghamton, NY: Haworth Press, 2007), 180.

Zouhali-Worrall, M., “Found in Translation: Avoiding Multilingual Gaffes,” CNNMoney.com , July 14, 2008, http://money.cnn.com/2008/07/07/smallbusiness/language_translation.fsb/index.htm (accessed December 14, 2009).

Principles of Marketing Copyright © 2015 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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Examples of Marketing Research Problems

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Companies and other organizations use marketing research to manage the risks associated with offering new products and services. These organizations don't want to spend too much money developing a product line that research indicates will be unsuccessful. A well-designed and well-executed marketing study can go a long way towards identifying consumer tastes and demographic preferences to help with a product launch. However, several common types of problems occur with market research that can make it overly costly and produce results of questionable value for the organization.

Poor Survey Design

Organizations use marketing research to find out what customers think and what they want. The survey is a direct way of collecting quantitative, or numerical, information and qualitative, or descriptive, information. When there are errors in the survey design, marketing research problems can surface.

For example, a company might use a method that is designed to collect a random sample from the target consumer population, but the method is not really random. Therefore, the organization cannot generalize its survey results to represent the target population. Similarly, poorly-worded survey questions can lead to ambiguous results from respondents who didn't grasp the intent of the question.

Survey Nonresponse

One marketing research problem relates to how the survey is offered to the target population. Marketers design a survey that many customers choose not to respond to. They look at reasons why people don't want to participate, and they might reach conclusions such as the survey takes too much effort or that the incentive for participation is not appealing to respondents.

Survey respondents are rarely willing to spend more than a few minutes on a voluntary survey. For longer efforts, consider offering some sort of compensation such as cash, a gift card, or a free product to encourage participation.

The Problem of Survey Bias

A survey might include one or more sources of bias. Marketers might believe, for example, that they have created an online survey to appeal to respondents of all ethnic backgrounds, but the survey questions, and even images, might be biased to favor one ethnic group or could offend one or more ethnic groups.

The famous image of the "Dewey Defeats Truman" newspaper headline in 1948 was the result of survey bias. The journalists had surveyed voters by telephone, thereby missing the opinions of the many voters that did not have telephones at the time.

A survey's format and content must be acceptable to all audiences from which marketers seek to gather information.

Issues with Observation Research

Some marketing research involves observing consumers in action and noting their preferences. Marketers can become intrusive, interfering with a consumer's experience to the point that a consumer feels disgusted and leaves the business site. For example, a fast-food chain's researchers need to determine if there is a need for a new location of its store so they survey people going through the drive-through line. Although researchers conduct a short survey, they aggravate customers by slowing down the line.

A market survey is a more complicated undertaking than it might, at first, appear. You might want to employ the services of marketing professionals if you do not have someone on staff with survey design experience.

• Survey Monkey: Market Research Surveys
• Satrix: Tope Ten Survey Design Problems
• History: Dewey Defeats Truman headline

Audra Bianca has been writing professionally since 2007, with her work covering a variety of subjects and appearing on various websites. Her favorite audiences to write for are small-business owners and job searchers. She holds a Bachelor of Arts in history and a Master of Public Administration from a Florida public university.

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• 1 Two Major Errors That Can Occur During Marketing Research
• 2 Definition of a Market Survey
• 3 Cross-Section Design of a Business Research Method
• 4 Examples of Market Research Surveys

Starting Market Research: Identify Your Marketing Research Problem

How and why to create a problem statement for your market research

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Market research attempts to fill a gap in your knowledge about your business, market, or customers. Before starting, however, you have to articulate your research problem with a statement of the problem you want to solve or the question you want to answer.

Why a Problem Statement Is Useful in Market Research

Before beginning any market research, you need to define the problem that the research will attempt to address, including any decision alternatives and research objectives. Your problem statement will guide every step of your market research. It articulates what you want to accomplish with your research, which guides the type of research you need to conduct. Open research is qualitative and helps you understand a phenomenon, opinion, or set of behaviors. Closed research is quantitative and seeks to identify the relationships among a set of variables.

Once you know the type of research you need, you can decide on your research methods, objectives, and time frame. Knowing these will help you gather the resources you need and begin creating a research plan.

How to Identify Market Research Questions

Market research generally begins with research questions from internal clients or from your marketing department about how to achieve specific marketing objectives or understand consumer behavior.

Using these marketing questions will help you identify your knowledge gaps and create an appropriate research problem statement, which will guide the scope of your research.

• Compile a list of all the questions your marketing staff or researchers have relating to a specific topic or situation.
• Look for categories under which the questions can be grouped.
• Create subcategories with these groups.
• Identify an overarching question that can define the missing knowledge for each subcategory.
• Try to find a single question that unites all the subcategories.

Identifying the proper scope of your problem statement can be challenging. Define the problem too narrowly and you may discover that your market researcher has missed valuable information or failed to consider other important variables. Define the problem too broadly and researchers may waste time and money collecting unnecessary information.

If you can identify a single question that brings together your subcategories, that becomes the first draft of your problem statement. If there is not a single question unifying them, you may need multiple rounds of market research , each with its own problem statement, to address each subcategory individually.

Using Your Market Research Problem Statement

There may be a specific decision for your marketing, products, budget, or brand that an answer to your research question will help you make. In that case, you can use backward mapping to identify the appropriate priorities and aims of your research.

Other times, your problem statement may be more open-ended, which means your research can be exploratory, descriptive, or causal rather than decision-mapped.

• Exploratory market research seeks to provide insights into the nature of a marketing problem, come up with new ideas, or suggest a range of possible solutions to be considered. It can help you identify new decisions or options that you didn't know were available to your business.
• Descriptive market research attempts to determine the magnitude of a marketing variable. This information can be used to identify new opportunities for your business or market, as well as better understand the needs of your target customers.
• Causal market research examines a cause-and-effect relationship. This research is often closed-ended. It can be applied to specific situations or used to identify trade-offs that your business or customers may have to make in the future.

Keep in mind that qualitative research often builds on itself. You may need to alter your focus or refine your research problem once data collection is underway.

A change in the problem statement does not necessarily reflect poor planning. More often, it indicates that your research has been successful and your team has identified where to focus the next round of research in order to completely answer your research questions.

• Advantages and Disadvantages of Quantitative Research
• How to Evaluate a Business Idea Before Taking the Plunge
• What Are Potential Markets?
• 10 Questions You Need to Answer to Create a Powerful Marketing Plan
• Media Buying Made Easy Step-By-Step
• What Is Market Research?
• Market Research 101: Data Analysis
• Quantitative and Qualitative Segmentation Research
• Qualitative and Quantitative Research Methods
• How to Analyze Small Business Qualitative Market Research
• Establishing Trustworthiness in Qualitative Research
• Market Research 101: Develop the Research Plan
• The Difference Between Primary and Secondary Research
• What Is a Market Research Focus Group?
• Target the Right Market With Segmentation
• How to Conduct Market Research Surveys

Marketing Research, 11th Edition by Carl McDaniel Jr., Roger Gates

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CHAPTER 3 Problem Definition, Exploratory Research, and the Research Process

Conducting marketing research involves a series of logical steps, beginning with problem definition and research objectives. What are the steps in the marketing research process? How is the research process initiated? These are the issues we will address in this chapter.

Critical Importance of Correctly Defining the Problem

Correctly defining the problem is the crucial first step in the marketing research process. If the research problem is defined incorrectly, the research objectives will also be wrong, and the entire marketing research process will be a waste of time and money. A large consumer packaged-goods company wanted to conduct a study among a brand’s heavy users in order to understand the brand’s equity. More specifically, it wanted to expand that equity into new products. The brand had very low penetration, so the company needed new products to meet the upcoming fiscal year’s volume goal of double-digit growth. Notice the absence of tying research learning—understanding the brand’s ...

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How to identify and resolve research problems

Updated July 12, 2023

In this article, we’re going to take you through one of the most pertinent parts of conducting research: a research problem (also known as a research problem statement).

When trying to formulate a good research statement, and understand how to solve it for complex projects, it can be difficult to know where to start.

Not only are there multiple perspectives (from stakeholders to project marketers who want answers), you have to consider the particular context of the research topic: is it timely, is it relevant and most importantly of all, is it valuable?

In other words: are you looking at a research worthy problem?

The fact is, a well-defined, precise, and goal-centric research problem will keep your researchers, stakeholders, and business-focused and your results actionable.

And when it works well, it's a powerful tool to identify practical solutions that can drive change and secure buy-in from your workforce.

Free eBook: The ultimate guide to market research

What is a research problem?

In social research methodology and behavioral sciences , a research problem establishes the direction of research, often relating to a specific topic or opportunity for discussion.

For example: climate change and sustainability, analyzing moral dilemmas or wage disparity amongst classes could all be areas that the research problem focuses on.

As well as outlining the topic and/or opportunity, a research problem will explain:

• why the area/issue needs to be addressed,
• why the area/issue is of importance,
• the parameters of the research study
• the research objective
• the reporting framework for the results and
• what the overall benefit of doing so will provide (whether to society as a whole or other researchers and projects).

Having identified the main topic or opportunity for discussion, you can then narrow it down into one or several specific questions that can be scrutinized and answered through the research process.

What are research questions?

Generating research questions underpinning your study usually starts with problems that require further research and understanding while fulfilling the objectives of the study.

A good problem statement begins by asking deeper questions to gain insights about a specific topic.

For example, using the problems above, our questions could be:

"How will climate change policies influence sustainability standards across specific geographies?"

"What measures can be taken to address wage disparity without increasing inflation?"

Developing a research worthy problem is the first step - and one of the most important - in any kind of research.

It’s also a task that will come up again and again because any business research process is cyclical. New questions arise as you iterate and progress through discovering, refining, and improving your products and processes. A research question can also be referred to as a "problem statement".

Note: good research supports multiple perspectives through empirical data. It’s focused on key concepts rather than a broad area, providing readily actionable insight and areas for further research.

Research question or research problem?

As we've highlighted, the terms “research question” and “research problem” are often used interchangeably, becoming a vague or broad proposition for many.

The term "problem statement" is far more representative, but finds little use among academics.

Instead, some researchers think in terms of a single research problem and several research questions that arise from it.

As mentioned above, the questions are lines of inquiry to explore in trying to solve the overarching research problem.

Ultimately, this provides a more meaningful understanding of a topic area.

It may be useful to think of questions and problems as coming out of your business data – that’s the O-data (otherwise known as operational data) like sales figures and website metrics.

What's an example of a research problem?

Your overall research problem could be: "How do we improve sales across EMEA and reduce lost deals?"

This research problem then has a subset of questions, such as:

"Why do sales peak at certain times of the day?"

"Why are customers abandoning their online carts at the point of sale?"

As well as helping you to solve business problems, research problems (and associated questions) help you to think critically about topics and/or issues (business or otherwise). You can also use your old research to aid future research -- a good example is laying the foundation for comparative trend reports or a complex research project.

(Also, if you want to see the bigger picture when it comes to research problems, why not check out our ultimate guide to market research? In it you'll find out: what effective market research looks like, the use cases for market research, carrying out a research study, and how to examine and action research findings).

The research process: why are research problems important?

A research problem has two essential roles in setting your research project on a course for success.

1. They set the scope

The research problem defines what problem or opportunity you’re looking at and what your research goals are. It stops you from getting side-tracked or allowing the scope of research to creep off-course .

Without a strong research problem or problem statement, your team could end up spending resources unnecessarily, or coming up with results that aren’t actionable - or worse, harmful to your business - because the field of study is too broad.

2. They tie your work to business goals and actions

To formulate a research problem in terms of business decisions means you always have clarity on what’s needed to make those decisions. You can show the effects of what you’ve studied using real outcomes.

Then, by focusing your research problem statement on a series of questions tied to business objectives, you can reduce the risk of the research being unactionable or inaccurate.

It's also worth examining research or other scholarly literature (you’ll find plenty of similar, pertinent research online) to see how others have explored specific topics and noting implications that could have for your research.

Four steps to defining your research problem

Image credit: http://myfreeschooltanzania.blogspot.com/2014/11/defining-research-problem.html

1. Observe and identify

Businesses today have so much data that it can be difficult to know which problems to address first. Researchers also have business stakeholders who come to them with problems they would like to have explored. A researcher’s job is to sift through these inputs and discover exactly what higher-level trends and key concepts are worth investing in.

This often means asking questions and doing some initial investigation to decide which avenues to pursue. This could mean gathering interdisciplinary perspectives identifying additional expertise and contextual information.

Sometimes, a small-scale preliminary study might be worth doing to help get a more comprehensive understanding of the business context and needs, and to make sure your research problem addresses the most critical questions.

This could take the form of qualitative research using a few in-depth interviews , an environmental scan, or reviewing relevant literature.

The sales manager of a sportswear company has a problem: sales of trail running shoes are down year-on-year and she isn’t sure why. She approaches the company’s research team for input and they begin asking questions within the company and reviewing their knowledge of the wider market.

2. Review the key factors involved

As a marketing researcher, you must work closely with your team of researchers to define and test the influencing factors and the wider context involved in your study. These might include demographic and economic trends or the business environment affecting the question at hand. This is referred to as a relational research problem.

To do this, you have to identify the factors that will affect the research and begin formulating different methods to control them.

You also need to consider the relationships between factors and the degree of control you have over them. For example, you may be able to control the loading speed of your website but you can’t control the fluctuations of the stock market.

Doing this will help you determine whether the findings of your project will produce enough information to be worth the cost.

You need to determine:

• which factors affect the solution to the research proposal.
• which ones can be controlled and used for the purposes of the company, and to what extent.
• the functional relationships between the factors.
• which ones are critical to the solution of the research study.

The research team at the running shoe company is hard at work. They explore the factors involved and the context of why YoY sales are down for trail shoes, including things like what the company’s competitors are doing, what the weather has been like – affecting outdoor exercise – and the relative spend on marketing for the brand from year to year.

The final factor is within the company’s control, although the first two are not. They check the figures and determine marketing spend has a significant impact on the company.

3. Prioritize

Once you and your research team have a few observations, prioritize them based on their business impact and importance. It may be that you can answer more than one question with a single study, but don’t do it at the risk of losing focus on your overarching research problem.

Questions to ask:

• Who? Who are the people with the problem? Are they end-users, stakeholders, teams within your business? Have you validated the information to see what the scale of the problem is?
• What? What is its nature and what is the supporting evidence?
• Why? What is the business case for solving the problem? How will it help?
• Where? How does the problem manifest and where is it observed?

To help you understand all dimensions, you might want to consider focus groups or preliminary interviews with external (including consumers and existing customers) and internal (salespeople, managers, and other stakeholders) parties to provide what is sometimes much-needed insight into a particular set of questions or problems.

After observing and investigating, the running shoe researchers come up with a few candidate questions, including:

• What is the relationship between US average temperatures and sales of our products year on year?
• At present, how does our customer base rank Competitor X and Competitor Y’s trail running shoe compared to our brand?
• What is the relationship between marketing spend and trail shoe product sales over the last 12 months?

They opt for the final question, because the variables involved are fully within the company’s control, and based on their initial research and stakeholder input, seem the most likely cause of the dive in sales. The research question is specific enough to keep the work on course towards an actionable result, but it allows for a few different avenues to be explored, such as the different budget allocations of offline and online marketing and the kinds of messaging used.

Get feedback from the key teams within your business to make sure everyone is aligned and has the same understanding of the research problem and questions, and the actions you hope to take based on the results. Now is also a good time to demonstrate the ROI of your research and lay out its potential benefits to your stakeholders.

Different groups may have different goals and perspectives on the issue. This step is vital for getting the necessary buy-in and pushing the project forward.

The running shoe company researchers now have everything they need to begin. They call a meeting with the sales manager and consult with the product team, marketing team, and C-suite to make sure everyone is aligned and has bought into the direction of the research topic. They identify and agree that the likely course of action will be a rethink of how marketing resources are allocated, and potentially testing out some new channels and messaging strategies .

Can you explore a broad area and is it practical to do so?

A broader research problem or report can be a great way to bring attention to prevalent issues, societal or otherwise, but are often undertaken by those with the resources to do so.

Take a typical government cybersecurity breach survey, for example. Most of these reports raise awareness of cybercrime, from the day-to-day threats businesses face to what security measures some organizations are taking. What these reports don't do, however, is provide actionable advice - mostly because every organization is different.

The point here is that while some researchers will explore a very complex issue in detail, others will provide only a snapshot to maintain interest and encourage further investigation. The "value" of the data is wholly determined by the recipients of it - and what information you choose to include.

To summarize, it can be practical to undertake a broader research problem, certainly, but it may not be possible to cover everything or provide the detail your audience needs. Likewise, a more systematic investigation of an issue or topic will be more valuable, but you may also find that you cover far less ground.

It's important to think about your research objectives and expected findings before going ahead.

Ensuring your research project is a success

A complex research project can be made significantly easier with clear research objectives, a descriptive research problem, and a central focus. All of which we've outlined in this article.

If you have previous research, even better. Use it as a benchmark

Remember: what separates a good research paper from an average one is actually very simple: valuable, empirical data that explores a prevalent societal or business issue and provides actionable insights.

And we can help.

Sophisticated research made simple with Qualtrics

Trusted by the world's best brands, our platform enables researchers from academic to corporate to tackle the hardest challenges and deliver the results that matter.

Our CoreXM platform supports the methods that define superior research and delivers insights in real-time. It's easy to use (thanks to drag-and-drop functionality) and requires no coding, meaning you'll be capturing data and gleaning insights in no time.

It also excels in flexibility; you can track consumer behavior across segments , benchmark your company versus competitors , carry out complex academic research, and do much more, all from one system.

It's one platform with endless applications, so no matter your research problem, we've got the tools to help you solve it. And if you don't have a team of research experts in-house, our market research team has the practical knowledge and tools to help design the surveys and find the respondents you need.

Of course, you may want to know where to begin with your own market research . If you're struggling, make sure to download our ultimate guide using the link below.

It's got everything you need and there’s always information in our research methods knowledge base.

Scott Smith

Scott Smith, Ph.D. is a contributor to the Qualtrics blog.

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•  Marketing

Defining the Market Research Problems

Market research companies have to overcome market research challenges to provide sound information and insights that drive the client company’s decision making.

Table of Contents

Market research can only be useful when the respondents are engaged and honestly answer the client’s questions. Understanding the problems in conducting market research and methods to overcome them leads to better outcomes.

Good market research data helps the client make the right decisions. Optimal respondent engagement is vital to good quality market research responses. Stating the market research problem well ensures that the client obtains the data that answers their queries.

Problems In Conducting Market Research

Market research is a vital method by which companies listen to what their target audience has to say. If companies do not perform market research the only feedback that they will be getting from their customers is negative feedback. This is because people are more likely to contact a company to complain than for any other purpose.

Market research is also a means to gauge the opinions of potential customers and the target demographic. It guides both marketings as well as product development in an organization.

"Marketing without data is like driving with your eyes closed." - Dan Zarrella

1. Getting Access To Participants That Are Engaged In The Research

The respondent to a survey must be focused and interested in the questions that are being asked. The responses should be accurate and timely. This focus, interest, timeliness, and accuracy are called participant engagement. It is what prevents the respondent from randomly clicking through answers instead of answering them. Good participant engagement is vital to the quality of data that is collected from a survey.

One of the most common ways to measure participant engagement is to measure the time taken to answer the questions. A participant who zooms through the questions sooner than it takes to read the question is not optimally engaged. A participant should take enough time to read and comprehend the question before answering.

2. Respondents That Make Sense To The Research

Market research is only useful when the people who are surveyed are of the right demography. Properly defining the target audience is a market research problem that can be solved with forethought.

A market researcher should define the attributes of the target audience such as age, gender, location, income, education, job, marital status, ethnicity, etc. The strategy of the market research should then be tailored to target the right audience. When the respondents that the market research attracts are of an irrelevant demographic it defeats the purpose of the entire exercise.

“Whoever understands the customer best, wins.” - Mike Gospe

3. How To Choose What Is Important And What Is Not

Market research is meaningful only when the market research company uses multiple and holistic data sources. The data should be in the proper context and have meaning to the study. All too often, the problem in market research is too much data in answer to ‘What is a market research problem you are facing?’.

When you have too much data, the quality and relevance of the data come into question. Proper research design , processes, and methodology to manage, analyze and visualize big data are essential to a market research company.

“The goal is to transform data into information, and information into insight.” - Carly Fiorina

The digital transformation has changed the level of interaction between a client company and its customers. Companies engage with their customers on social media, apps, customer support , and online communities. They have direct access to customers and their ongoing relationship builds trust. This is a personal relationship as opposed to the impersonal approach of a market researcher with the target audience.

Market research requires that the researcher have access to the target group. This involves an impersonal relationship that maintains privacy. It is becoming increasingly difficult for market research companies to have the same level of access and engagement with customers or target customers of a company.

Market researchers have to find a way to engage with and excite their target audience so that they are relaxed and willing to share the required answers to questions. They should build a feel-good relationship to have a willing and engaged pool of respondents.‍

Managing Market Research Challenges

To increase levels of engagement in a market study, market research companies have devised newer strategies to attract and keep an audience. This includes creative surveys, rewards, and the use of technology to counteract the problems in conducting market research. One market research problem example could even be finding what rewards would be preferred by the target group.

1. When it comes to variety, it’s more the merrier

The fact that people like variety applies equally to ice cream as well as market research. When questions are similar and monotonous it may lead to a lack of interest. Making the question format varied is a simple yet effective way to keep the respondent engaged. You can also add a little humour to the questions. Make them more casual and out of the way for maximum impact. The more creative and catchy the survey is the better its response.

When a survey is memorable and interesting, the respondent will be willing to answer more surveys from the same market researcher in the future.

2. Thinking big with small attention spans

Attention spans are getting shorter. Survey as short as possible. The fewer the questions that are asked the better the attention and connection to the respondents. A market research survey must carefully weigh the necessity of every question that is asked.

Too many irrelevant questions stress the respondents and do not add any meaning or value to the market research problem. The shorter the time taken to answer the questions, the less respondent fatigue the survey faces.

3. An optimized survey is an amazing one

Most of the surveys that are being taken are now through digital mode. People use smart devices more than ever. So, your survey should be equally attractive on a computer screen as well as a phone or tablet screen.

The optimization of the survey can also be visual to appeal to the people who are being questioned. This includes the colour, images, language, and humour that is specific and relevant to the target group.

4. Rewards are the real game-changer

Rewarding respondents for their time and effort is on the upswing. This is to encourage people to be more willing to take a survey. The rewards that are given can be monetary or non-monetary. They are usually tailored to the preferences of the target audience. It is vital that the reward that is offered be attractive and relevant to the target group.

For example, a music-related survey could offer discounts on music or free merchandise directly related to the type of music that they would prefer. While physical gifts and souvenirs can be given, they also include the cost and logistics of delivering them. Coupons and vouchers are easier to deliver to the respondents.

One of the easiest and most attractive incentives is to use a platform such as Plum that offers a range of options. You can offer a basket of different incentives that appeal to many different types of people. The type and size of the incentive that is offered must be decided on based on how difficult the questions are and how much time and effort they take to answer.

The incentive should be attractive and relevant to the survey. Consistency in the reward pattern will ensure that the respondents are confident of the benefit that they will receive after the survey. Rewards that are instant and easy to redeem are the most memorable and preferred.

5. Stacking up on the right tech

Many tools are available and many are being released. A market analysis company should be updated on the latest developments in available technology. Not all tech tools live up to their marketing.

A market research company must be able to select the right technology and tools for the right job. The right reward programs should also be chosen for optimum results. Market researchers can use technology to automate and personalize their reward and incentive programs.

6. Stating the research problem and objectives

The quality and usability of a market research report depend on the right market research problem statement. The market research problem statement guides the research objectives as well as the direction and flow of the market analysis. It should be unambiguous.

Market Research Problem Statement

What is a market research problem.

The market research problem is the reason that the market research process is being conducted. It defines the research objectives, how the study is going to be conducted, what marketing metrics should be measured, and the conclusion that is expected as a result of the market research study. When the market research problem is vague or misinterpreted, the entire market study and its results will be a wasted exercise.

“Listening is hearing the needs of the customer, understanding those needs and making sure the company recognises the opportunity they present.” - Frank Eliason

Defining The Market Research Problem

The first part of the market research problem definition is to establish the context or background of the problem. This helps understand the need for the research and the issues that drive it. The next step is to clearly and unambiguously define the market research problem and justify the need for the market study. The third component of a good market research problem then suggests the methodology and types of data and sources that will be required.

The scope of the market research problem envisions the desired outcome of the study and how the results could be actionable. Many problems in conducting market research will be avoided if one correctly understands what is a market research problem. Defining the problem statement and research questions is vital to the success of the research challenge and market research.

Market Research Problem Example

Some market research problem example questions are:

• What is the market size of a target market?
• I am planning to open a store in the XYZ location. How many other competitors are located within walking distance from that area?
• What are the most popular products or services in the XYZ category?
• Which colour should our company website be?
• What is the most wanted feature in my product or service category?
• Would my best selling product or service do well in a particular region or country?

It’s quite a challenge to stay on top of the latest trends and improvements in technology. However, this can be solved by identifying the accurate problem statements and picking out the right metrics for market analysis, ensuring that the clients’ questions are answered accurately.

As for the problem of finding the right respondents and keeping them engaged, rewards and incentives are effective in getting quality outputs from the activity. The incentives can be monetary or non-monetary, and they must be quick to redeem, flexible, and appealing, leading to an engaged survey base and high-quality data from your next marketing campaign.

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-->Mohit Bansal -->

Mohit Bansal has 6 years of experience in solving early product and product marketing problems. In his last stint, he along with his co-founders bootstrapped a profitable startup.

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How to Identify & Solve Your Business Problems Using Market Research

by Caitlin Stewart , on June 19, 2014

Problem-Identification Research

By conducting new market research projects in your company, you might discover a potential dilemma or opportunity that you have not considered before. You could discover any of the following factors through problem-identification research:

• Brand Image : your customers’ perceptions of your brand. It’s extremely important to be aware of how customers view your company. Determining which strategies you want to use to positively influence your brand image can be done through researching your consumers’ current perceptions and what they want from your company.
• Market Characteristics : the characteristics of your target market . You need to consider all aspects that drive your different customers to purchase. Your customers on the west coast are going to have different purchasing behaviors than those from the east coast. Recognizing these differences between subcultures, and meeting the needs of those differences, will help your business’ marketing strategies succeed.
• Market Potential : an estimate of your product’s potential profit. If you research how consumers might react to advertising or price changes in your product before you take action, you will be better prepared and market to your consumers more accurately.
• Market Share : percent of total product sales compared to your competitors. Market share gives you an estimate of the amount of market your company holds and can give you an idea of how you compare to your competitors . It also can reveal some of your competitors' capabilities and strengths, so you can develop an appropriate strategy.

Problem-Solving Research

Once you identify your marketing problem, you need to research how to solve it. The following research options will help you solve potential problems or capitalize on opportunities identified by your company:

• Distribution Research : determining where your product should be sold and how to get it there. Distribution Research helps you plan the best way to get your product from the manufacturer to the retail shelf. In addition to deciding which retailers should carry your product, you should determine where your inventory will be held.
• Market Segmentation : Grouping customers by similar backgrounds or similar purchase behaviors. Utilizing problem-solving research can determine how to most accurately accomplish this and even how to design advertisements to attract those groups. You will need to collect both qualitative and quantitative data to accurately understand your market segments.
• Pricing Research : determining the ideal price for your product. Setting the price for your product is one of the most important marketing steps. You need to keep the customer in mind as well as remember that the main goal is to maximize your profits. Consider whether or not customers can be gained through lower prices. Can you maximize profit through increasing price? How sensitive will your customers be if you begin slightly increasing price? All aspects need to be well thought-out. Researching customer’s reactions to price sensitivity is essential.
• Product Research : testing your new or revised products or completing test marketing. Researching secondary data or observing how your products will be used can allow you to effectively compete in the market. Testing different components can identify new products or discover ways to modify existing products, for example, updating a product to compete with newer products.
• Promotional Research : following up with the effectiveness of your advertising strategies . If your company is using advertisements, there are factors you need to be checking up on. Unless you are evaluating your advertising budget, if your ads are useful in both retaining and gaining customers and researching what type of ads (online, commercial or print) are most effective, you truly cannot know whether you’re wasting your company’s money.

Using research for problem identification and problem solving is essential when you want to make your company the best in its market. Classifying your problem should always come before attempting to solve them. Otherwise, you might be spending money to solve the wrong problem.

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What is a Research Problem? Characteristics, Types, and Examples

A research problem is a gap in existing knowledge, a contradiction in an established theory, or a real-world challenge that a researcher aims to address in their research. It is at the heart of any scientific inquiry, directing the trajectory of an investigation. The statement of a problem orients the reader to the importance of the topic, sets the problem into a particular context, and defines the relevant parameters, providing the framework for reporting the findings. Therein lies the importance of research problem s.  

The formulation of well-defined research questions is central to addressing a research problem . A research question is a statement made in a question form to provide focus, clarity, and structure to the research endeavor. This helps the researcher design methodologies, collect data, and analyze results in a systematic and coherent manner. A study may have one or more research questions depending on the nature of the study.   

Identifying and addressing a research problem is very important. By starting with a pertinent problem , a scholar can contribute to the accumulation of evidence-based insights, solutions, and scientific progress, thereby advancing the frontier of research. Moreover, the process of formulating research problems and posing pertinent research questions cultivates critical thinking and hones problem-solving skills.   

Table of Contents

What is a Research Problem ?  

Before you conceive of your project, you need to ask yourself “ What is a research problem ?” A research problem definition can be broadly put forward as the primary statement of a knowledge gap or a fundamental challenge in a field, which forms the foundation for research. Conversely, the findings from a research investigation provide solutions to the problem .  

A research problem guides the selection of approaches and methodologies, data collection, and interpretation of results to find answers or solutions. A well-defined problem determines the generation of valuable insights and contributions to the broader intellectual discourse.  

Characteristics of a Research Problem  

Knowing the characteristics of a research problem is instrumental in formulating a research inquiry; take a look at the five key characteristics below:  

Novel : An ideal research problem introduces a fresh perspective, offering something new to the existing body of knowledge. It should contribute original insights and address unresolved matters or essential knowledge.   

Significant : A problem should hold significance in terms of its potential impact on theory, practice, policy, or the understanding of a particular phenomenon. It should be relevant to the field of study, addressing a gap in knowledge, a practical concern, or a theoretical dilemma that holds significance.  

Feasible: A practical research problem allows for the formulation of hypotheses and the design of research methodologies. A feasible research problem is one that can realistically be investigated given the available resources, time, and expertise. It should not be too broad or too narrow to explore effectively, and should be measurable in terms of its variables and outcomes. It should be amenable to investigation through empirical research methods, such as data collection and analysis, to arrive at meaningful conclusions A practical research problem considers budgetary and time constraints, as well as limitations of the problem . These limitations may arise due to constraints in methodology, resources, or the complexity of the problem.  

Clear and specific : A well-defined research problem is clear and specific, leaving no room for ambiguity; it should be easily understandable and precisely articulated. Ensuring specificity in the problem ensures that it is focused, addresses a distinct aspect of the broader topic and is not vague.  

Rooted in evidence: A good research problem leans on trustworthy evidence and data, while dismissing unverifiable information. It must also consider ethical guidelines, ensuring the well-being and rights of any individuals or groups involved in the study.

Types of Research Problems  

Across fields and disciplines, there are different types of research problems . We can broadly categorize them into three types.  

• Theoretical research problems

Theoretical research problems deal with conceptual and intellectual inquiries that may not involve empirical data collection but instead seek to advance our understanding of complex concepts, theories, and phenomena within their respective disciplines. For example, in the social sciences, research problem s may be casuist (relating to the determination of right and wrong in questions of conduct or conscience), difference (comparing or contrasting two or more phenomena), descriptive (aims to describe a situation or state), or relational (investigating characteristics that are related in some way).  

Here are some theoretical research problem examples :   

• Ethical frameworks that can provide coherent justifications for artificial intelligence and machine learning algorithms, especially in contexts involving autonomous decision-making and moral agency.  
• Determining how mathematical models can elucidate the gradual development of complex traits, such as intricate anatomical structures or elaborate behaviors, through successive generations.  
• Applied research problems

Applied or practical research problems focus on addressing real-world challenges and generating practical solutions to improve various aspects of society, technology, health, and the environment.  

Here are some applied research problem examples :   

• Studying the use of precision agriculture techniques to optimize crop yield and minimize resource waste.  
• Designing a more energy-efficient and sustainable transportation system for a city to reduce carbon emissions.  
• Action research problems

Action research problems aim to create positive change within specific contexts by involving stakeholders, implementing interventions, and evaluating outcomes in a collaborative manner.  

Here are some action research problem examples :   

• Partnering with healthcare professionals to identify barriers to patient adherence to medication regimens and devising interventions to address them.  
• Collaborating with a nonprofit organization to evaluate the effectiveness of their programs aimed at providing job training for underserved populations.  

These different types of research problems may give you some ideas when you plan on developing your own.  

How to Define a Research Problem  

You might now ask “ How to define a research problem ?” These are the general steps to follow:   

• Look for a broad problem area: Identify under-explored aspects or areas of concern, or a controversy in your topic of interest. Evaluate the significance of addressing the problem in terms of its potential contribution to the field, practical applications, or theoretical insights.
• Learn more about the problem: Read the literature, starting from historical aspects to the current status and latest updates. Rely on reputable evidence and data. Be sure to consult researchers who work in the relevant field, mentors, and peers. Do not ignore the gray literature on the subject.
• Identify the relevant variables and how they are related: Consider which variables are most important to the study and will help answer the research question. Once this is done, you will need to determine the relationships between these variables and how these relationships affect the research problem . 
• Think of practical aspects : Deliberate on ways that your study can be practical and feasible in terms of time and resources. Discuss practical aspects with researchers in the field and be open to revising the problem based on feedback. Refine the scope of the research problem to make it manageable and specific; consider the resources available, time constraints, and feasibility.
• Formulate the problem statement: Craft a concise problem statement that outlines the specific issue, its relevance, and why it needs further investigation.
• Stick to plans, but be flexible: When defining the problem , plan ahead but adhere to your budget and timeline. At the same time, consider all possibilities and ensure that the problem and question can be modified if needed.

Key Takeaways  

• A research problem concerns an area of interest, a situation necessitating improvement, an obstacle requiring eradication, or a challenge in theory or practical applications.   
• The importance of research problem is that it guides the research and helps advance human understanding and the development of practical solutions.  
• Research problem definition begins with identifying a broad problem area, followed by learning more about the problem, identifying the variables and how they are related, considering practical aspects, and finally developing the problem statement.  
• Different types of research problems include theoretical, applied, and action research problems , and these depend on the discipline and nature of the study.  
• An ideal problem is original, important, feasible, specific, and based on evidence.  

Frequently Asked Questions  

Why is it important to define a research problem?  

Identifying potential issues and gaps as research problems is important for choosing a relevant topic and for determining a well-defined course of one’s research. Pinpointing a problem and formulating research questions can help researchers build their critical thinking, curiosity, and problem-solving abilities.   

How do I identify a research problem?  

Identifying a research problem involves recognizing gaps in existing knowledge, exploring areas of uncertainty, and assessing the significance of addressing these gaps within a specific field of study. This process often involves thorough literature review, discussions with experts, and considering practical implications.  

Can a research problem change during the research process?  

Yes, a research problem can change during the research process. During the course of an investigation a researcher might discover new perspectives, complexities, or insights that prompt a reevaluation of the initial problem. The scope of the problem, unforeseen or unexpected issues, or other limitations might prompt some tweaks. You should be able to adjust the problem to ensure that the study remains relevant and aligned with the evolving understanding of the subject matter.

How does a research problem relate to research questions or hypotheses?  

A research problem sets the stage for the study. Next, research questions refine the direction of investigation by breaking down the broader research problem into manageable components. Research questions are formulated based on the problem , guiding the investigation’s scope and objectives. The hypothesis provides a testable statement to validate or refute within the research process. All three elements are interconnected and work together to guide the research.  

R Discovery is a literature search and research reading platform that accelerates your research discovery journey by keeping you updated on the latest, most relevant scholarly content. With 250M+ research articles sourced from trusted aggregators like CrossRef, Unpaywall, PubMed, PubMed Central, Open Alex and top publishing houses like Springer Nature, JAMA, IOP, Taylor & Francis, NEJM, BMJ, Karger, SAGE, Emerald Publishing and more, R Discovery puts a world of research at your fingertips.  

Try R Discovery Prime FREE for 1 week or upgrade at just US$72 a year to access premium features that let you listen to research on the go, read in your language, collaborate with peers, auto sync with reference managers, and much more. Choose a simpler, smarter way to find and read research – Download the app and start your free 7-day trial today !  

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How to Define a Marketing Research Problem

Preparing a perfect marketing research report depends on the research problem statement. The more clear and comprehensible your problem statement is, the more focused and directed your study will be. So how can you write the perfect marketing study statement of problem?

Before telling you that, let’s see what is a marketing research problem is?

In simple words, it is to determine the preferences and buying behavior of the customers and to study whether a particular product or service will be profitably sold or not. The problem statement defines specific and distinct objectives behind conducting the study. Your research hypothesis, methodology, conclusion and recommendations all depends on the problem statement.

There are three main components to a good research problem in marketing.

1.- Background of the problem

It is important to give a little background of the problem in the problem statement to make the reader aware of the depth and history of the issue. This will provide a basis for clear and better understanding of the issue.

2.- The Specific Problem

This is the main part of your problem statement. This is where you introduce your issue to the viewers.

a.- Problem definition

In this part, you give a brief and concise overview of the problem and define specifically what the problem is and why and when is it occurring?

Tips If you are having trouble writing this part of the problem statement, simply go about answering these following questions in the below mentioned sequence in one sentence answers.

• What is the exact problem that needs to be solved?
• Where does the problem occur?
• When does the problem occur or what factors contribute to the occurrence of the problem?

b.- Justification for the study

This is the most important part after the problem definition. This is where you will be informing your readers why you have chosen this topic for research and present valid rationalizations for it.

Tips To formulate good justifications, just answer the following questions:

• Why is this study necessary?
• What will happen if this study is ignored?

c.- Specific methodology that will be used for the study

Here, you can define specifically the method you will be using to solve the problem.

There are basically two types of data that is used for research, primary and secondary data. Which type of data will you be using?

• Primary data is obtained by first hand observations or communication. It usually involves questionnaires filed by the target audience, personal interviews or focus groups arranged for a specific purpose.
• Secondary data involves summary of already existing data which includes newspapers, company journals and government statistics.

Tips Based on the explanation above, try to understand which type of data will you need for your marketing study? This usually depends on the kinds of variables involved in your study. If your variable involves study of customers’ perceptions and views, then you will be conducting primary research whereas if it involves a study of governmental or company policies, then you will be conducting secondary research.

3.- Scope of the problem

This includes the desired outcome that you wish to see through your study.

Tips For writing this part of your problem statement, answer the following question:

• What changes would you like to see through your research?

So by clearly understanding and following the above mentioned components and tips, formulating market research problem statements for your thesis or dissertation can be done in no time.

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How To Conduct Marketing Research That Improves Business Outcomes

Would you send marketing emails about retirement home options to people who have just graduated college? Or run beer commercials during Saturday morning cartoons? Probably not, because the people who would see those emails and ads are not the audience for those products. 

Marketing research helps you target the best audiences for your product and identify the types of campaigns that will appeal to them. Observing demographic trends and competitor strategies will provide you with valuable insights that can innovate and expand your product offerings.

Depending on their budgets and requirements, every organization will conduct their market research uniquely. However, they generally include the following steps (though they may differ in name or approach):

• Identify your target audience
• Analyze your competitors’ marketing activities
• Find opportunities for stronger markets
• Evaluate engagement
• Identify problems and create solutions
• Run tests based on your findings
• Restructure your marketing efforts based on your results

1. Identify Your Target Audience

Say you have a coffee brand and you want to maximize your marketing dollars. Targeting the entirety of the coffee-drinking population is too wide-reaching to be an effective strategy, and you’ll end up wasting money trying to engage people who are unlikely to want your product. Fans of frozen, heavily sweetened coffee drinks aren’t likely to resonate with an advertisement for a simple, unsweetened shot of espresso, after all.

Start identifying your target audience by using primary data (also known as direct data) and secondary data. Focus groups, surveys, interviews, and questionnaires are forms of primary data that give you control over who you talk to and the questions you ask.

There are plenty of sources you can use for secondary research , such as census data, articles and reports in industry publications, and online databases. You can also search and monitor social media platforms to see what people are saying about products and services similar to yours. 

After analyzing and segmenting this data, you can create buyer personas —fictional representations of your target markets that incorporate their demographic information, pain points, and preferred methods of communication. These will be useful guides to help you develop your strategies and messaging.

2. Analyze Your Competitors’ Marketing Activities 

See what other businesses in your industry are doing by conducting a competitive analysis to get an overview of the landscape and identify trends and tactics you may be able to leverage in your own efforts. Study what their ads are like and where they appear. Who do they seem to be targeting? What social media platforms do they use? What kinds of content do they create, and how often? Do they get a lot of mentions and pieces in the press? What is their overall brand profile and market share?

3. Find Opportunities for Stronger Markets

Consider functionality, features, pricing, performance, customer service, and brand reputation. Brainstorm strategies to position your product or service in a way that will appeal to an underserved or overlooked target market. One way you might do this is by offering a low-cost option targeted toward people facing socioeconomic hardship. There may even be an opportunity to provide a complementary product or service, which is not only a kind and generous thing to do, but also a great opportunity for brand awareness and perception.

4. Evaluate Engagement

Different audiences prefer to engage with brands on different platforms. Some consumers spend a lot of time on X or Instagram, while others prefer reading newsletters via email. The social management platform Sprout Social has some useful information on the demographics of various social media platforms . 

Content formats play a part in engagement as well. Some audiences like reading copy, while others prefer short-form video. If your target audience isn’t very active in certain channels, pull back and invest in the ones they do use.

5. Identify Problems and Create Solutions

If you find areas where your efforts are falling short and you’re not seeing the response or conversion rate you’d hoped for, check whether the problem might be your messaging, the format, timing, or other factors. For example, you might be using an ineffective channel. 

If you’re struggling with consumer engagement or creating products that aren’t optimized for your market, you may be facing a value proposition issue. The Pace University MBA offers Value Creation as an elective or Marketing Management course that will teach you how to find innovative opportunities for consumer engagement through the use of technology. 

6. Run Tests Based on Your Findings

Rather than spend a lot of marketing dollars on a tweak that might not work, test it first. A/B testing is everywhere in digital marketing—these tests are easy and cheap to run, and they can deliver valuable results quickly.

For example, try A/B tests by sending emails with two different subject headings or creating two slightly different landing pages to see which one gets more engagement. 

7. Restructure Your Marketing Efforts to Better Connect to Your Target Audience

You may only need to make small changes, such as emphasizing a certain feature of your product in messaging or focusing more on social channels with a wider audience of younger users, such as TikTok. Or you may need to completely rethink your marketing strategy or even adapt your product or service to meet customer needs and preferences. In our hypothetical coffee example, you may find that your target audience prizes convenience. That may lead you to offer your coffee in pods and adapt your messaging to highlight the ease and speed of making your coffee in a pod machine. 

The Value of Marketing Research

Marketing research is a critical part of strategic planning. It helps business leaders make informed decisions that minimize risks, maximize returns, and ensure that resources are allocated efficiently.

Marketing isn’t static, especially in a crowded and competitive business landscape. Businesses must engage in market research activities consistently to A) add or refine products and services and B) monitor how their target market might be changing. Customer tastes and needs evolve, and external factors such as new technologies , economic developments, and changes in cultural norms can completely shift the market. Well-executed marketing research can help ensure you always know who your target audience is, what they want, and what you need to do to attract them.

How an MBA Prepares You To Make an Impact

An MBA can provide you with an advanced understanding of business operations, including marketing, to prepare you for leadership and management roles. Pace University’s MBA program offers a Marketing Management concentration that enables you to dive deeper into marketing research, including learning frameworks for gathering and analyzing information. All of the marketing-focused courses in the program will integrate research in some way, and the concentration overall is dedicated to teaching you how to create and improve the performance of your marketing campaigns. Armed with this expertise, you can make an ongoing impact on organizational objectives as well as the trajectory of your career over a lifetime.

About the Pace University Online MBA and Lubin School of Business

The Pace University online Master of Business Administration (MBA) gives professionals a hands-on learning experience to master the ins and outs of business theory through real world application. This 100% online program has been handcrafted by expert faculty to ensure that students are career-ready upon completion. Choose a Corporate Finance, Marketing Management, or general business concentration.

For over a century, Pace University’s Lubin School of Business has been preparing professionals for fulfilling careers in business. From responsive professor communication to hands-on, project-based learning, we do everything we can to help students succeed.

Pace’s Lubin School of Business has dual accreditation by the Association to Advance Collegiate Schools of Business (AACSB) International, an elite distinction shared by fewer than 2% of business schools in the world. With graduates thriving in companies like AIG, Nickelodeon, L’Oreal, Tesla, and many others, Pace equips students with vital business knowledge, while also creating innovative thinkers that companies want.

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Differences between Management Decision Problem and Marketing Research Problem

Management Decision Problem:

When a situation arises that necessitates the management of a company to make a decision that necessitates research, we have a Management Decision Problem.

Marketing Research Problem:

The term “research problem” refers to an area of interest that necessitates an in-depth examination of a particular subject, condition, contradiction, or issue.

Instead of asking what a manager should do, marketing researchers want to know what they should know and how they can get it. Making an informed decision can be aided by research. Decisions made in management are action-oriented. It focuses on what the DM can do in the game.

Is a new market segmentation scheme absolutely required? Do we really need a new product? Do we need more money for marketing?

The research problem would shift to the identification and evaluation of a new market segmentation framework. It’s important to keep in mind that this is a collaborative process. The example of a department store shows the distinction between the management decision problem and the marketing research problem and the interactive nature of the problem definition process. However, you have to learn artificial intelligence , business intelligence , and competitive intelligence .

For a better understanding of the differences between managerial decision-making and marketing research, consider the following examples:

Moreover, there are lucrative careers in Marketing Research . Anyone can build one’s career in this field.

More From Forbes

The strategic role of market research in mergers and acquisitions.

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Amaan Kazi is the CEO of Verified Market Research , a global market research & consulting firm focused on niche & emerging markets.

What’s the one thing you do before making a big purchase? Before buying a house, a car or even a pricey gadget? You research. You watch videos, read articles, scroll through reviews, speak with friends and family.

That’s what we do as consumers to dodge the regret of a bad decision—a decision that could set us back years. Ever wonder what businesses do in similar high-stakes situations like mergers and acquisitions (M&A)? The answer is the same: Market research.

Just like you don’t buy a car without checking under the hood, businesses leverage market research to extrapolate insights that go beyond ticking boxes. Especially when it comes to mergers and acquisitions, this research can uncover crucial information.

1. Identifying Prospects

A filmmaker selects locations that enhance the storytelling of their film; they consider each location's unique characteristics, accessibility and how well it fits into the film’s narrative and aesthetic needs. Similarly, as a business, the first step in a successful merger/acquisition deal is identifying the right companies that not only complement strengths but also offset weaknesses, noting unique assets that have a strategic fit to your capabilities.

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Case in point: When Amazon bought Whole Foods , it wasn’t just buying a company. Amazon acquired an established grocery chain with an affluent, health-conscious customer base and strong urban and suburban presence. Detailed market research highlighted Whole Foods’ alignment with trends in organic products, supply chain synergies and potential for technological integration.

This strategic fit, combined with Amazon’s technological prowess, enabled them to enhance customer experiences, optimize operations and effectively compete in the grocery sector, ultimately reinventing grocery logistics.

Here's the essential check-list to determine your potential acquisition targets:

• Customer demographics and behaviors

• Market position and brand reputation

• Financial health and performance

• Operational efficiency and supply chain/distribution

• Technological capabilities

• Human capital and corporate culture

• Regulatory and compliance status

2. Matching Interests

Take the process of choosing a life partner in marriage, for example. Besides the initial attraction, a deeper evaluation of compatibility in values, life goals and personalities plays a key role in deciding a fit. Both parties look for a partnership that will bring mutual benefits, support growth and enhance each other’s lives.

This is similar to how companies assess cultural fit, leadership vision and business model compatibility in potential mergers or acquisitions.

We can learn from history: The Daimler-Benz and Chrysler merger of 1998 promised a global auto empire. Instead, clashing German-American corporate cultures created a roadmap to disaster. A deeper dive into their cultural compatibilities might have shown red flags early on.

Here's how to leverage market research to hopefully avoid this kind of disaster:

• Make human capital and corporate culture assessments. Conduct employee surveys and interviews to gather insights into the corporate cultures of both companies.

• Identify synergies and gaps. Use focus groups to explore cultural similarities and differences, fostering open dialogue and understanding.

• Develop a cultural integration plan. Organize joint cultural workshops to create a detailed plan for integrating teams and aligning corporate values.

• Monitor and adjust your integration plan: Establish feedback mechanisms such as surveys and focus groups to continuously monitor your integration process and make necessary adjustments.

3. Foresight

Knowing the weather ahead can make or break your road trip. Before setting out, you don't only check the weather for the day you leave, but for every leg of your journey, adjusting your route to avoid potential storms and capitalize on clear skies.

Similarly, in the world of mergers and acquisitions, foresight is the ability to understand not only how a potential acquisition fits with your current operations but also how it will synergize and evolve within your industry's future landscape.

One illustrative example: Microsoft’s acquisition of LinkedIn was a game-changer and strategic masterstroke. They didn’t just see LinkedIn as a professional network; they recognized the platform’s potential as a pivotal element in the future of work. Beyond adding a new asset, it strategically positioned Microsoft at the forefront of professional networking, enhancing its existing suite of productivity tools in a digital-first professional environment.

Here are some methods to predict acquisition fit and avoid common pitfalls:

• Scenario planning. Anticipate performance under future conditions.

• SWOT analysis. Understand strengths, weaknesses, opportunities and threats.

• Technology assessment. Align with future tech trends.

• Market trend analysis. Position your company in the future market.

• Competitive analysis. Assess market positioning relative to competitors.

• PESTLE analysis. PESTLE stands for political, economic, sociological, technological, legal and environmental. This type of analysis can help you evaluate macro-environmental factors impacting operations.

By addressing these points, companies can leverage foresight in their M&A strategies, helping to ensure successful integration and long-term synergy.

How Research Can Lead To An M&A

A few years ago, a client of ours sought insights on a niche market they planned on expanding into. The research report we delivered not only provided them with a comprehensive analysis of key segments of the market but also highlighted underexploited synergies with a competitor.

Fast forward a couple of months, the two companies, initially competitive in nature, gradually shifted toward collaborative opportunities that capitalized on both their strengths while also covering for each other’s weaknesses. Eventually, this led to both parties realizing the mutual benefit of a merger, especially since they both aligned on their vision of the industry.

Closing Notes

Market research defines and then empowers a well-thought-out strategy. It helps dodge bullets, seize opportunities and make informed decisions. More specifically, it also helps you understand cultural insights, make better decisions, boost confidence, avoid risk, spot opportunities and integrate with others more smoothly.

In conclusion, just as you wouldn’t shop blindly for a significant investment, in business, you don’t dive into mergers and acquisitions without homework. Market research is that homework.

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The state of AI in early 2024: Gen AI adoption spikes and starts to generate value

If 2023 was the year the world discovered generative AI (gen AI) , 2024 is the year organizations truly began using—and deriving business value from—this new technology. In the latest McKinsey Global Survey  on AI, 65 percent of respondents report that their organizations are regularly using gen AI, nearly double the percentage from our previous survey just ten months ago. Respondents’ expectations for gen AI’s impact remain as high as they were last year , with three-quarters predicting that gen AI will lead to significant or disruptive change in their industries in the years ahead.

About the authors

This article is a collaborative effort by Alex Singla , Alexander Sukharevsky , Lareina Yee , and Michael Chui , with Bryce Hall , representing views from QuantumBlack, AI by McKinsey, and McKinsey Digital.

Organizations are already seeing material benefits from gen AI use, reporting both cost decreases and revenue jumps in the business units deploying the technology. The survey also provides insights into the kinds of risks presented by gen AI—most notably, inaccuracy—as well as the emerging practices of top performers to mitigate those challenges and capture value.

AI adoption surges

Interest in generative AI has also brightened the spotlight on a broader set of AI capabilities. For the past six years, AI adoption by respondents’ organizations has hovered at about 50 percent. This year, the survey finds that adoption has jumped to 72 percent (Exhibit 1). And the interest is truly global in scope. Our 2023 survey found that AI adoption did not reach 66 percent in any region; however, this year more than two-thirds of respondents in nearly every region say their organizations are using AI. 1 Organizations based in Central and South America are the exception, with 58 percent of respondents working for organizations based in Central and South America reporting AI adoption. Looking by industry, the biggest increase in adoption can be found in professional services. 2 Includes respondents working for organizations focused on human resources, legal services, management consulting, market research, R&D, tax preparation, and training.

Also, responses suggest that companies are now using AI in more parts of the business. Half of respondents say their organizations have adopted AI in two or more business functions, up from less than a third of respondents in 2023 (Exhibit 2).

Gen AI adoption is most common in the functions where it can create the most value

Most respondents now report that their organizations—and they as individuals—are using gen AI. Sixty-five percent of respondents say their organizations are regularly using gen AI in at least one business function, up from one-third last year. The average organization using gen AI is doing so in two functions, most often in marketing and sales and in product and service development—two functions in which previous research  determined that gen AI adoption could generate the most value 3 “ The economic potential of generative AI: The next productivity frontier ,” McKinsey, June 14, 2023. —as well as in IT (Exhibit 3). The biggest increase from 2023 is found in marketing and sales, where reported adoption has more than doubled. Yet across functions, only two use cases, both within marketing and sales, are reported by 15 percent or more of respondents.

Gen AI also is weaving its way into respondents’ personal lives. Compared with 2023, respondents are much more likely to be using gen AI at work and even more likely to be using gen AI both at work and in their personal lives (Exhibit 4). The survey finds upticks in gen AI use across all regions, with the largest increases in Asia–Pacific and Greater China. Respondents at the highest seniority levels, meanwhile, show larger jumps in the use of gen Al tools for work and outside of work compared with their midlevel-management peers. Looking at specific industries, respondents working in energy and materials and in professional services report the largest increase in gen AI use.

Investments in gen AI and analytical AI are beginning to create value

The latest survey also shows how different industries are budgeting for gen AI. Responses suggest that, in many industries, organizations are about equally as likely to be investing more than 5 percent of their digital budgets in gen AI as they are in nongenerative, analytical-AI solutions (Exhibit 5). Yet in most industries, larger shares of respondents report that their organizations spend more than 20 percent on analytical AI than on gen AI. Looking ahead, most respondents—67 percent—expect their organizations to invest more in AI over the next three years.

Where are those investments paying off? For the first time, our latest survey explored the value created by gen AI use by business function. The function in which the largest share of respondents report seeing cost decreases is human resources. Respondents most commonly report meaningful revenue increases (of more than 5 percent) in supply chain and inventory management (Exhibit 6). For analytical AI, respondents most often report seeing cost benefits in service operations—in line with what we found last year —as well as meaningful revenue increases from AI use in marketing and sales.

Inaccuracy: The most recognized and experienced risk of gen AI use

As businesses begin to see the benefits of gen AI, they’re also recognizing the diverse risks associated with the technology. These can range from data management risks such as data privacy, bias, or intellectual property (IP) infringement to model management risks, which tend to focus on inaccurate output or lack of explainability. A third big risk category is security and incorrect use.

Respondents to the latest survey are more likely than they were last year to say their organizations consider inaccuracy and IP infringement to be relevant to their use of gen AI, and about half continue to view cybersecurity as a risk (Exhibit 7).

Conversely, respondents are less likely than they were last year to say their organizations consider workforce and labor displacement to be relevant risks and are not increasing efforts to mitigate them.

In fact, inaccuracy— which can affect use cases across the gen AI value chain , ranging from customer journeys and summarization to coding and creative content—is the only risk that respondents are significantly more likely than last year to say their organizations are actively working to mitigate.

Some organizations have already experienced negative consequences from the use of gen AI, with 44 percent of respondents saying their organizations have experienced at least one consequence (Exhibit 8). Respondents most often report inaccuracy as a risk that has affected their organizations, followed by cybersecurity and explainability.

Our previous research has found that there are several elements of governance that can help in scaling gen AI use responsibly, yet few respondents report having these risk-related practices in place. 4 “ Implementing generative AI with speed and safety ,” McKinsey Quarterly , March 13, 2024. For example, just 18 percent say their organizations have an enterprise-wide council or board with the authority to make decisions involving responsible AI governance, and only one-third say gen AI risk awareness and risk mitigation controls are required skill sets for technical talent.

Bringing gen AI capabilities to bear

The latest survey also sought to understand how, and how quickly, organizations are deploying these new gen AI tools. We have found three archetypes for implementing gen AI solutions : takers use off-the-shelf, publicly available solutions; shapers customize those tools with proprietary data and systems; and makers develop their own foundation models from scratch. 5 “ Technology’s generational moment with generative AI: A CIO and CTO guide ,” McKinsey, July 11, 2023. Across most industries, the survey results suggest that organizations are finding off-the-shelf offerings applicable to their business needs—though many are pursuing opportunities to customize models or even develop their own (Exhibit 9). About half of reported gen AI uses within respondents’ business functions are utilizing off-the-shelf, publicly available models or tools, with little or no customization. Respondents in energy and materials, technology, and media and telecommunications are more likely to report significant customization or tuning of publicly available models or developing their own proprietary models to address specific business needs.

Respondents most often report that their organizations required one to four months from the start of a project to put gen AI into production, though the time it takes varies by business function (Exhibit 10). It also depends upon the approach for acquiring those capabilities. Not surprisingly, reported uses of highly customized or proprietary models are 1.5 times more likely than off-the-shelf, publicly available models to take five months or more to implement.

Gen AI high performers are excelling despite facing challenges

Gen AI is a new technology, and organizations are still early in the journey of pursuing its opportunities and scaling it across functions. So it’s little surprise that only a small subset of respondents (46 out of 876) report that a meaningful share of their organizations’ EBIT can be attributed to their deployment of gen AI. Still, these gen AI leaders are worth examining closely. These, after all, are the early movers, who already attribute more than 10 percent of their organizations’ EBIT to their use of gen AI. Forty-two percent of these high performers say more than 20 percent of their EBIT is attributable to their use of nongenerative, analytical AI, and they span industries and regions—though most are at organizations with less than $1 billion in annual revenue. The AI-related practices at these organizations can offer guidance to those looking to create value from gen AI adoption at their own organizations.

To start, gen AI high performers are using gen AI in more business functions—an average of three functions, while others average two. They, like other organizations, are most likely to use gen AI in marketing and sales and product or service development, but they’re much more likely than others to use gen AI solutions in risk, legal, and compliance; in strategy and corporate finance; and in supply chain and inventory management. They’re more than three times as likely as others to be using gen AI in activities ranging from processing of accounting documents and risk assessment to R&D testing and pricing and promotions. While, overall, about half of reported gen AI applications within business functions are utilizing publicly available models or tools, gen AI high performers are less likely to use those off-the-shelf options than to either implement significantly customized versions of those tools or to develop their own proprietary foundation models.

What else are these high performers doing differently? For one thing, they are paying more attention to gen-AI-related risks. Perhaps because they are further along on their journeys, they are more likely than others to say their organizations have experienced every negative consequence from gen AI we asked about, from cybersecurity and personal privacy to explainability and IP infringement. Given that, they are more likely than others to report that their organizations consider those risks, as well as regulatory compliance, environmental impacts, and political stability, to be relevant to their gen AI use, and they say they take steps to mitigate more risks than others do.

Gen AI high performers are also much more likely to say their organizations follow a set of risk-related best practices (Exhibit 11). For example, they are nearly twice as likely as others to involve the legal function and embed risk reviews early on in the development of gen AI solutions—that is, to “ shift left .” They’re also much more likely than others to employ a wide range of other best practices, from strategy-related practices to those related to scaling.

In addition to experiencing the risks of gen AI adoption, high performers have encountered other challenges that can serve as warnings to others (Exhibit 12). Seventy percent say they have experienced difficulties with data, including defining processes for data governance, developing the ability to quickly integrate data into AI models, and an insufficient amount of training data, highlighting the essential role that data play in capturing value. High performers are also more likely than others to report experiencing challenges with their operating models, such as implementing agile ways of working and effective sprint performance management.

About the research

The online survey was in the field from February 22 to March 5, 2024, and garnered responses from 1,363 participants representing the full range of regions, industries, company sizes, functional specialties, and tenures. Of those respondents, 981 said their organizations had adopted AI in at least one business function, and 878 said their organizations were regularly using gen AI in at least one function. To adjust for differences in response rates, the data are weighted by the contribution of each respondent’s nation to global GDP.

Alex Singla and Alexander Sukharevsky  are global coleaders of QuantumBlack, AI by McKinsey, and senior partners in McKinsey’s Chicago and London offices, respectively; Lareina Yee  is a senior partner in the Bay Area office, where Michael Chui , a McKinsey Global Institute partner, is a partner; and Bryce Hall  is an associate partner in the Washington, DC, office.

They wish to thank Kaitlin Noe, Larry Kanter, Mallika Jhamb, and Shinjini Srivastava for their contributions to this work.

This article was edited by Heather Hanselman, a senior editor in McKinsey’s Atlanta office.

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The 16 Most Important Social Media Trends for 2024

With social media trend cycles moving faster than ever, we’re asking ourselves: what’s worth paying attention to in 2024?

2024 social media trends

Welcome to social media in 2024, where trends change faster than Taylor Swift fan theories. There are hot new platforms, fresh ways to shop, and countless algorithm updates. It’s enough to make even the savviest heads spin.

But no need to spiral, friends, because we’ve done the digging for you. Take this blog post as permission to stop obsessively checking every app in search of the hottest new social media trends.

Get our 2024 Social Trends report, and dig into the juicy data that’ll help you reach your goals in 2024—which is shaping up to be social’s best year yet.

16 most important social media trends for 2024

1. text-only posts are the sleeper hit of the year (and x remains on top).

While the shakeup at X seems to have stabilized in recent months, the uncertainty at the platform did give plenty of other text-based apps an opportunity to eat up some market share in 2023.

Mastodon , for example, has 1.7 million monthly active users . The Jack Dorsey-funded Bluesky Social is invite-only (exclusive!) but boasts over 1 million active users.

And then there’s Meta’s Threads app. It exploded out of the gate in July 2023, reaching more than 44 million daily active users in record time.

Source: Inforgram

But don’t give up on X just yet. The platform formerly known as Twitter is still the most-used text-based social media app .

X says its user base exceeded 540 million in 2023 and will grow to over 650 million users over the next five years (though Statista reports slightly lower numbers, as well as a dip in users worldwide in 2023).

X platform usage remains high, even if those users aren’t quite sure what to call it:

Source: Hootsuite on LinkedIn

But the popularity of these new competitors has made one thing clear: the people are hungry for text, and not just on text-based platforms.

Over on Facebook, old-school text posts are still doing big numbers. Auntie Anne’s has been repurposing top-performing Tweets as Facebook posts for years now, and the engagement those posts earn is eye-popping.

Plus, we all know text-only posts on LinkedIn can take off:

The success of these posts, especially among marketers, makes a ton of sense. They require less time to create (especially if you use a tool like OwlyWriter AI ) and are way less likely to get stuck in your approval process .

What are we getting at? No matter what happens at X, text-based social apps aren’t going anywhere. And text-only posts, even on platforms that aren’t considered text-forward, are far from over.

To-do list:

• Secure your usernames on Mastodon, Bluesky and Threads, even if you don’t have time to invest in them yet.
• Look for opportunities to repurpose your text-only content on other platforms (i.e., reposting your Tweets on Instagram).
• Don’t delete your X account yet or reduce the number of times you tweet each week (if you’re feeling fatigued, you can speed up Tweet writing with AI ).
• Polish your X marketing strategy and keep a close eye on whether your audience continues to engage on the platform with Hootsuite Analytics .

2. Social platforms will become the hottest new search engines

If you want real insights from real people, Google search results don’t always do the trick.

But you know where you can reliably find a wealth of advice from actual humans?

That’s right: social media. In 2024 and beyond, social media channels represent the biggest threat to traditional search engines .

TikTok is now integrating Google search results into its in-app results, and the platform has added robust search tools like Keyword Insights to its Creative Center.

Plus, recent surveys suggest that social media platforms are the second most popular way for Gen Z to research their shopping decisions. It looks like Google is right to worry about TikTok, Facebook, and Instagram encroaching on its territory.

We talked about social SEO as an important trend in 2022 — and tested our theories in our own experiments — but it’s an even bigger deal now.

Last year, the social SEO tactics we suggested focused mainly on keyword optimization in captions and profiles. Now, social strategies are evolving to address search intent while still producing content that entertains as it educates (edutainment, if you will).

As long as it’s still relevant, evergreen content can show up in social search basically forever. And the more engagement those posts have, the more likely they are to rise to the top of social search results pages.

Here’s an example of an SEO-optimized post created by the Hootsuite social team.

@hootsuite Ranking the captions our new AI instagram caption generator wrote to announce its own launch #copywriting #aiwritingassistant #instagramcaption #aiinstagramcaption ♬ I Think I Like When It Rains – WILLIS

Social search is still new, but as the platforms continue to improve and expand their search functions, we can see this particular social media trend continuing far into the future.

• Continue to use social SEO and keyword research to build out your content calendars. We’ve got tips for Instagram , TikTok , Facebook , YouTube , and X .
• Start creating content that answers common questions in your niche. Educational content is far more likely to show in search results, even months after posting.
• Incorporate social SEO as a component of your strategy, but don’t make it your primary focus.
• If you haven’t tried social SEO yet, watch the video below to get started.

3. Longer videos will make a big comeback

Since we’re still recovering from the whiplash of the short-form video takeover, it feels crazy to say this, but here goes: longer videos are about to be hot again .

When we say longer videos, we don’t mean long videos. Unless you’re in a long-form niche (YouTube video essays, for example), we’re talking a length of two to five minutes per video instead of less than a minute.

There are a few reasons why we expect the algos to reward meatier videos this year.

First, the big platforms keep increasing their max video lengths . Instagram Reels can now be as long as 15 minutes, and TikTok is reportedly testing that length as well. Plus, X (Twitter) rolled out its premium subscription, which allows paid users to upload videos of up to two hours long.

  Post by @mattnavarra View on Threads

Second, user behavior is changing. As we mentioned in trend #2, users now frequently turn to social networks to answer questions they might normally pose to Google or other web search engines . Content creators on social need to be able to answer questions in-depth in their videos, which takes more time.

Finally, people are heading to social media to kill time and be entertained more than ever before . (We’re guessing that’s why Paramount recently uploaded the entirety of Mean Girls to TikTok).

In short, social media is poised to earn an even bigger chunk of the Free Time Pie this year, if you can imagine that. And our brains love getting sucked into stuff, so bank on it: long(er) is the new short.

• Experiment with posting two- to three-minute Instagram Reels and TikToks (and download them without watermarks so you can easily cross-post them).
• Lean into your evergreen video strategy (more timeless, in-depth videos that feature original audio and answer your audience’s questions).
• Keep videos to one part unless absolutely necessary (i.e., don’t divide them into Part 1, Part 2, etc.).
• When posting longer videos, include timestamps in your captions or the video description so viewers can easily navigate through the content.
• Don’t post long videos just for the sake of it. Make sure they’re entertaining and valuable to your followers.

4. Engagement will move from feeds to DMs

These days, social media feeds are busy with news, memes, creator content, ads, organic marketing from brands — and arguments about whether the dress is black and blue or white and gold (Just kidding! 2015 called and asked if you were paying attention!).

The one thing you don’t see much of on social feeds anymore is organic, uncurated posts from friends and family.

There are many reasons for this shift. But the fact that personal updates don’t live in plain sight doesn’t mean they’ve completely disappeared from the social media landscape.

In August 2023, Business Insider interviewed a handful of Gen Z Instagram users for an article ominously titled “ Social media is dead .” 22-year-old content creator Tati Bruening said:

“There’s this very weird, unspoken social standard of what’s allowed on Instagram. I know that for my age group, it’s like you give up on it entirely, and then you just post only to your Close Friends or alternate accounts. There’s this sublayer of Instagram that’s much more true to what the app once was, but it is just not viewable to the general public.”

But Close Friends stories and finstas aren’t the only private places Instagram users share personal updates with friends. Even more engagement happens in DMs.

Head of Instagram Adam Mosseri said in a recent episode of the 20VC podcast : “Most of Instagram’s growth has been in stories and DMs.” He also admitted Meta was aware of messaging app Telegram growing into a potentially significant competitor, even though Instagram is “not a messaging app.”

Maybe this is why the team at Instagram has developed many new DM-centered features recently, including:

• Notes , the text-only status updates that live and can be answered in DMs
• Broadcast channels , a one-to-many messaging system inspired by Telegram
• Improved guardrails against unsolicited messages

So, what does this mean for social marketers?

First, tracking brand-related engagement is more difficult when it happens in the privacy of DMs — off-limits territory for social listening tools and traditional analytics. But that doesn’t mean it can’t yield significant business results (see our tips for tracking this type of dark social below).

Second, brands and organizations need to get comfortable with the fact that DMs are the preferred communication method for most social media users . This goes for B2C conversations too, which means that social media will become even more of a customer service channel in coming years.

• Encourage your audience to DM you with questions and feedback.
• Get your social team ready to handle customer service inquiries. Give them tools (like Hootsuite Inbox ) that will help them keep track of and easily answer social messages from all your accounts across networks.
• Set up automated responses for simple, frequently asked questions and the times of day when your team is offline.
• Use UTMs to track (at least some of) the traffic you get from DM shares.
• If your organization uses social media to share timely content, news, or important PSAs, consider starting an Instagram Broadcast Channel . ( Note : At the moment, the feature is only available to users with Creator accounts. Keep an eye on Adam Mosseri’s own Broadcast Channel for updates.)

Manage all your messages stress-free with easy routing, saved replies, and friendly chatbots. Try Hootsuite’s Inbox today.

5. Shares will matter more than likes, comments, or followers

Every social marketer wants to expand their reach, but if you’ve ever tried to buy followers or likes, you know the results can be… disappointing . Especially when your boss asks you to prove how those investments have paid off.

Comments, likes, and followers can all be faked. Views and impressions are easily inflated. But there’s one engagement signal that’s much harder to game: shares .

Unlike comments, likes, followers, or views, shares represent actual value. When someone shares your content in Stories, DMs, or off-platform, you know they’re willing to vouch for you to their own audience.

Don’t get us wrong: comments and likes are still valuable engagement signals. But if you design your content to be shared, the likes and comments will still follow. The reverse isn’t always true.

Platforms like Instagram, TikTok, and X have either made share counts public or are testing doing just that — and if that’s not a nod to their importance, we don’t know what is.

Looks like @instagram has begun rolling out share/comment counts. UX wise, it looks sharp. Although, it does seems a little counterintuitive following the removal of like counts all those years ago. pic.twitter.com/fANF1rBCpV — Nick Alessi (@nckalessi) August 10, 2023

If you want to make sure your content gets shared more in 2024, start by looking at what’s already working. (Hint: Hootsuite Analytics makes this part pretty easy.) What has your audience responded well to in the past, and how can you make more of that?

Start free 30-day trial

Then, when you’re creating new content, try running it through social media consultant Rachel Karten’s shareability test before you hit Post.

But whatever you do, don’t buy shares (or likes, comments, or followers). At best, you’ll hear crickets. At worst, you’ll earn a platform suspension or a permanent ban.

• Get really clear on who you’re making content for and what they care about.
• Investigate your top-shared posts using a tool like Hootsuite Analytics. What made them so successful? How can you repeat those wins?
• Before you post new content, run it through a shareability test like Karten’s. If your target audience isn’t likely to share your post, what can you adjust to hook them?
• Start paying attention to shares in your regular marketing reports.

6. Telegram might become the next super app

You already know the group chat is the new Facebook status (see trend #4), which is why messaging apps like Telegram are in such a sweet position to skyrocket this year. The privacy-focused chat platform has over 800 million monthly active users and gets around 2.5 million new sign-ups per day. (Seeing the dollar signs yet?)

Although Telegram has been around since 2013, it didn’t become the full-fledged social media network it is today until much more recently. That’s thanks in part to Ukraine’s President Volodymyr Zelensky, who has consistently used the app to communicate during the war with Russia.

What was once an app for sending secure messages to friends now has many enticing social features. And the platform continues to add more, which is why we think it’s in a strong position to become one of the next super apps .

Some current Telegram features include:

• Group chats (up to 1,000 users), secret chats, and video chats
• Support for media, links, files, music, and voice in chats
• Stories that let you share photos and videos for a limited duration
• Broadcast channels for sending out messages to large audiences
• Payment bots to send money between buyers and sellers
• Telegram Passport for secure personal identification verification
• Sponsored messaging via the Telegram Ad Platform

The app added an advertising platform in 2021, which allows brands to send sponsored messages to channels with 1,000+ subscribers. Marketers might want to consider integrating Telegram into their paid strategies and striking while the iron is hot on this platform.

• Government agencies, in particular, might consider following Zelensky’s lead and creating broadcast channels on the app to keep citizens informed with less risk.
• Cross-promote your broadcast channel (with links) to your audience on your other social media networks.
• Sign up for the Telegram Ad Platform and experiment with sponsored messaging.

7. The fediverse is the future of social media (but it’s not here yet)

Mastodon. Hive. Bluesky. Threads. What do these social networks have in common?

Sure, each has been touted as Twitter/X’s heir apparent. But they’re also either current or future examples of decentralized social media networks, and they may be a sign of things to come.

But before we get too far into it, a refresher on “decentralized platforms” (because this stuff can get confusing).

Unlike traditional social networks, decentralized platforms use blockchain or peer-to-peer networks to distribute information across many servers.

That means your data isn’t confined to a single server, and no one entity controls it. If enough of these networks are connected, you can communicate seamlessly across them.

That’s exactly what the fediverse , or “federated universe,” is all about. Users on one network in the fediverse can follow, interact, and share content with users on another. The fediverse is big on privacy, independence, community and connection.

That said, the fediverse may not be our social reality just yet .

The team behind Threads certainly seems excited to move towards the decentralized model, but so far, Threads still operates a lot like other traditional social networks.

And while the shakeup at X this year had some social marketers questioning the concept of traditional, centralized networks, the platform formerly known as Twitter has managed to retain most of its users.

Plus, most existing decentralized networks are still too technically complex (see the many “How does Mastodon/Bluesky even work??” posts on X) for most regular users.

• If you haven’t already, secure accounts and start exploring platforms like Mastodon and Bluesky. There’s no harm in preparing for the future.
• Start building out your community-oriented social strategy. It’ll be a big part of the decentralized future, but it’s just as relevant for the traditional networks.

8. Every grid post will be a photo dump

We first talked about photo dumps back in 2022, but at the time, they seemed like a passing fad.

Apologies: our crystal ball must have been malfunctioning that day.

Photo dumps, formerly known as carousels, are now the only way to post on Instagram — and since TikTok introduced photo mode , they’ve taken off on that platform too.

(And seriously, no one’s calling them carousels anymore.)

Source: Jess Val on TikTok

You’ve probably noticed that your friends are posting on Instagram less frequently these days. But do us a favor and check out their last few posts — they’re photo dumps, aren’t they?

Those friends aren’t alone, either. There are now more than 3.6M Instagram posts using the #photodump hashtag .

And while the name may imply a lack of curation or strategy, that’s definitely not the case.

The multi-photo format allows creators and brands to tell longer stories, participate in photo-specific trends, and connect with their audience in a way that feels authentic and unfiltered.

Source: TikTok

They’re also a great way to deliver a lot of information without investing in a costly, production-heavy video. On Instagram, you can share up to 10 photos or videos in a single post, and on TikTok, you’ve got up to 35 slides.

Plus, carousels, sorry, photo dumps, are still the top-performing format on Instagram , earning more reach and engagement than Reels or solo posts.

Better storytelling, more reach, and higher engagement for less money? Yeah, we’d call that a format worth investing in.

• Plan your photo dumps carefully — that first photo is key! Grab your audience with a hook that’ll have them scrolling all the way through.
• Watch for photo-specific trends, especially on TikTok. If you can come up with a take that makes sense for your brand, high engagement is almost guaranteed.
• If your first photo dump doesn’t take off, keep testing. Play around with different styles and lengths of carousels.
• Don’t try to get too sales-y. Photo dumps are the perfect fit for your educational or trending content.

9. LinkedIn will deprioritize personal content (and win more love from Gen Z)

We watched closely as COVID-19 turned LinkedIn from a place for professional updates, career advice, and work brags to a feed filled with personal anecdotes and weekend selfies.

But just as we were warming up to the professional platform getting personal, LinkedIn started giving some signals that it would be returning to its roots.

In fact, LinkedIn has already rolled out some algorithm changes that prioritize professionalism , including one that focuses on “knowledge and advice,” especially among subject matter experts and people within a user’s network.

That’s because, LinkedIn says, its users find content the most valuable when it’s rooted in knowledge, especially if it was posted by someone they know.

Subtext: if you want your posts to go viral on LinkedIn in 2024, you’ve got to work even harder on building out your personal network and followers.

Another indicator that things are skewing more professional is LinkedIn’s new Top Voice badge feature. The platform grants these badges to creators who “share valuable expertise through content that demonstrates their unique, original contributions to a topic.”

Source: Kaylee Edmondson on LinkedIn

The platform clearly wants to reward users who share content based on their professional expertise.

One more important trend to note for LinkedIn in 2024: Gen Z will gain a greater share of the platform’s user base. They’re its fastest-growing demographic, and they’re already outpacing their elders when it comes to adding connections on the platform.

And that’s not just because millions of Gen Z’ers age into the job market each year. It’s also because, as critics posit , younger internet users are seeking a place of earnest celebration (and one free of the overly curated, aspirational, and FOMO-inducing content on Instagram and TikTok).

• Scale back the personal posts in favor of professional content and posts that spotlight your expertise.
• But prioritize growing your personal network and follower base (on LinkedIn, users respond best to content posted by people they know in real life or are familiar with online).
• Reinforce yourself or your brand as a subject matter expert.
• Tidy up your LinkedIn strategy and stay active.
• Don’t ignore an emerging Gen Z audience on the platform (you can always use our LinkedIn post generator if you don’t speak Gen Z).

10. TikTok Shop will spark a re-emphasis on authenticity

We’ve been predicting the big TikTok ecommerce boom for a while, but it was still surprising to see just how fast the ForYouPage morphed into a shopping app with the release of TikTok Shop in the U.S. in September 2023.

Just a few months later, TikTok is at the center of the social shopping trend . The app’s in-house storefront and fulfillment service is fast becoming an influencer favorite. And if you’ve spent much time scrolling lately, you already know the algorithm seems to be rewarding users who promote it.

With TikTok handling the shipping and fulfillment, too, there’s less incentive for money-makers to take their sales and affiliate rewards outside of the app.

But it’s not all roses and dollar signs. TikTok users are already reporting scams and knock-offs and questioning creators’ sincerity . There has also been a steep rise in “deinfluencing” content, or content that helps users with overspending and impulse shopping .

@overcoming_overspending here for another ✨deinfluencing✨ moment #deinfluencing #deinfluencer #deinfluence #overspending #overspendingmoney #consciousconsumer #moneytok #moneycoachforwomen #savemoneytips #spendless #shoppingaddict #compulsiveshopping #compulsiveshopper #creditcarddebt #debtfree #impulsebuying #impulseshopping ♬ original sound – Paige-Overcoming Overspending

So, what does this mean for sellers? Besides the obvious — they need to get their products up on TikTok, like, yesterday — we predict that creators who promote their goods in a more authentic way will have the most success on TikTok Shop.

You may see influencers lean more heavily into product placement and detach from overt advertising tactics offered by TikTok Shop.

• If you’re eligible, put your products up on TikTok Shop.
• Promote your products in a way that still feels authentic and not sales-y (that’s what made TikTok so special to begin with).
• Keep a close eye on your TikTok analytics as you start to sell on TikTok. Note whether your promotional videos are doing better than the rest.
• Try sitcom-style product placement (casually including products in videos without calling them out explicitly).

11. You won’t need a BeReal strategy

Hands up, who else placed their bets on BeReal in 2023?

The real-time selfie app captured our hearts, minds, and marketing strategies last year, and why not? An endless feed of unfiltered, spontaneous updates felt like the perfect antidote to highly curated Instagram feeds.

But the app’s popularity came and went like the disappearing selfies that made it so enticing. Although BeReal amassed over 73 million active users at the height of its popularity, recent stats show that only a third of those users are still active on the platform.

Source: Appfigures.com

Sadly, we don’t have high hopes for BeReal’s resurgence — at least for brands , and here’s why: the app’s swift rise and fall shone a light on a broader, more salient social media trend. These days, users are quick to adopt shiny new trends, but they’re even quicker to abandon them.

The steady decline in BeReal’s monthly users proved that, once the novelty wears off, users — especially Gen Z users — are quick to uninstall.

• Don’t divest entirely from BeReal. Keep your username and keep an eye on trends. Some apps don’t appeal to mass audiences but still thrive among certain niches and demographics
• Note that BeReal will delete your account if it’s inactive for two years, so pop in from time to time and post a selfie or two
• Remember that platforms themselves can be micro-trends. Strike while the iron is hot, but don’t put all your eggs in one basket or expect them to deliver long-term

12. TikTok will continue to be the birthplace of video trends

You know those TikTok jokes about Reels being the place where trends go to die? No? Here’s an example:

@kassypoo27 no explanation needed ♬ What on earth is going on in the house of commons – zkrm

The idea is that social media trends start making rounds on Reels after they surface — and sometimes even get old — on TikTok.

But let’s be clear: Even if Reels are a bit behind on shiny new trends, they’re still a very relevant (and continuously growing) format, and your brand should definitely be making them.

That said, the TikTok to Reels trend pipeline is real.

TikTok’s demographic skews younger than Instagram’s, and the platform is always a couple of steps ahead of its Meta-owned rival in terms of editing features, filters, and audio clips. It’s also, by nature, more creative and “unhinged” (more on that in the next section) than Instagram.

All this means that, for now, TikTok is likely to remain the mothership of short video trends — and keeping an eye on it will help you stay ahead of your Instagram-focused competitors.

• Scroll! Your For You page is full of content trends waiting to be discovered.
• Take note of how brands are participating in trends and how their audiences are reacting to it.
• Fold the ideas that seem the most relevant to your business and social goals into your content calendar — and start testing!
• If you are in a highly regulated industry (or are not ready to start filming and posting quite yet), keep a burner account to stay informed, but don’t worry about posting.

13. The unhinged social media manager will calm down a little

You’ve probably noticed brands becoming more fun and daring with their online personas in the last few years. This social media trend not so coincidentally overlapped with TikTok’s rise to popularity as a B2C-friendly network. It’s an entertainment platform , after all, and businesses that can’t, well, entertain their TikTok audiences may be better off looking for success elsewhere.

That’s more or less how the unhinged social media manager persona was born. Social media managers fully embraced the language of the internet (niche memes, edgy humor, obscure Gen Z lingo, trending sounds, etc.) to create relatable, often chaotic, sometimes a bit shocking — and ultimately, engaging — content.

@scrubdaddy STANK!! 🤢. #scrubdaddy #smile #cleantok #cleaningtiktok #americasfavoritesponge ♬ ITS DA DOOO DOOO TRUCKL – Theyluv_MikeMike🩵🦅

Getting spicy and subverting expectations paid off for a few trailblazers (hi Duolingo , hello Scrub Daddy ), helping them go viral and inspiring others to follow suit. Before long, a pizza chain was posting about stuffed crustussy (?!?), a travel bag producer was telling their audience of “idiots” who didn’t know how to adjust straps to “shut up,” and every other brand account was complaining about their boss in the first person.

And then… it started getting old. The more brands leaned into the chaos, the less authentic the SMM-turned-comedian voice felt. With such widespread adoption, it lost the shock value and a lot of its original appeal. And let’s not forget the poor souls who accidentally took things a bit too far and ended up in hot water.

So, is there a happy medium? Does being funny and relatable outweigh the risk of reputational damage? Is the unhinged social media manager trope slowly dying?

The answer is: it’s complicated.

The unhinged SMM is the polar opposite of the social marketer limited by inflexible brand guidelines, complicated approval processes, and leaders who don’t understand social media. And most organizations would benefit from building a relatable online personality, learning to speak their audience’s language, and giving social media managers more creative freedom.

Those who decide to go a bit unhinged need to make sure that it’s part of a smart strategy (thorough audience research and clear goals) rather than just posting the team’s only chronically online Gen Z person’s jokes without approval.

• Build trust in your social media team within your organization. SMMs know social better than senior leaders — their judgment should always be taken seriously.
• Get everyone on the same page about what’s off-limits. Include non-negotiables in your social media policy (e.g., offensive language, explicit jokes). Be specific.
• Revise your social media approval workflows . Make sure that your process never gets in the way of creative and timely ideas.
• Take note of how people within your niche communicate. How casual are they? What jokes do they use? Consider how this style of communication aligns with your goals on social media. Then, rework your style guide to reflect your findings.
• If you operate in a highly regulated industry or your audience demographics skew older, don’t force it. Chaotic humor might not be for you — and that’s ok.

14. Social isn’t moving into the metaverse quite yet

2021 and 2022 were full of news about Mark Zuckerberg’s then-new project, the metaverse.

Since Meta is best known as a social media company (home of Facebook, Messenger, Instagram, WhatsApp, and, as of 2023, Threads), social media managers everywhere rightfully wondered how the metaverse would change social — and their jobs.

But, in late 2023, we’re not hearing as much buzz about the metaverse  — at least not in the context of social media.

Since Zuckerberg dubbed 2023 “ the year of efficiency ,” engaging in several belt-tightening tactics, the expensive metaverse project has moved out of the spotlight — but it hasn’t been completely deprioritized. Meta continues to invest in it, but more for gaming than anything else. This aligns with independent predictions on how the metaverse will make money in the coming years:

So, what does the future hold for Meta’s metaverse? Time will tell. But for all we know, social media isn’t moving into virtual reality quite yet.

• Keep an eye on industry news to follow new developments.
• If you have a friend with a VR set, go play some mini golf with them — it’s fun!

15. Social media managers will become best friends with AI

Is ChatGPT coming for your job? Do you need to rebrand yourself as a prompt engineer ? Is AI-written content good enough, kind of ok, or absolute hot garbage?

The jury of LinkedIn thought leaders is still out, but we’ve got some answers.

The TL;DR of our take is: Generative AI is a super valuable tool for savvy marketers. It won’t take your job (unless you’re really bad at it — and we know that’s not true!). It will make it easier, and it will help you get better results faster.

And we have proof. Our team at Hootsuite ran an experiment where we tested a human writer against ChatGPT on X (formerly Twitter). The results were interesting — ChatGPT generated more engagement, but the human-written captions got more impressions. You probably see where we’re going with this: Humans and AI work great as a team.

AI can help you get words on the page faster, brainstorm ideas, and create many variants of a specific message for testing. But social media managers are still the brains behind it all.

Tools like ChatGPT will allow you to spend more time thinking about your goals, interacting with your social audience, testing new tactics, measuring your results, and so on.

Simply put, AI will help you become a more strategic social marketer .

• Spend some time playing with a free AI tool like ChatGPT . A small time investment now will save you tons of time in the future.
• Write new social media captions from scratch in a specific tone of voice
• Write posts based on a link (e.g., a blog post or a product page)
• Generate post ideas based on a keyword or topic (and then write posts expanding on the idea you like best)
• Identify and repurpose your top-performing posts
• Create relevant captions for upcoming holidays
• … and then easily schedule those posts to go live at the optimal times, across all your social profiles.

OwlyWriter AI instantly generates captions and content ideas for every social media network. It’s seriously easy.

Bonus: Here’s a bunch of free tools that will help you get started with AI.

16. You won’t ignore YouTube Shorts anymore

Remember when YouTube Shorts first launched in 2021? Many dismissed it as another “TikTok clone” and went back to creating content for the networks they were familiar with.

If we could, we’d go back to those not-too-distant days and give ourselves a good shake. Because YouTube Shorts is more than just a flash in the pan .

According to Google Trends, American interest in YouTube Shorts (generally a reliable indicator of business interest in the platform) has increased by more than 500% since 2021.

Source: Google Trends

This isn’t just a stateside phenomenon, either. In 2022, there were 1.5 billion monthly active users on YouTube Shorts. In 2023, that number rose another half billion.

Users who’ve stuck with the platform are seeing big gains. But if you’re not using Shorts yet, there’s still time to get on board.

On our own Hootsuite Labs channel, we only started posting Shorts regularly back in April 2023. We now earn thousands of views, hundreds of likes, and a respectable stream of new channel subscribers each week.

If you already have a YouTube channel, Shorts could be a huge opportunity to connect with a new audience. (And if you’re already making TikToks or Instagram Reels, you’ve got a library of short-form video content just waiting to be repurposed.)

Say hello to content links! 🩳 Edit any Short in Studio Desktop 🔗 Add a link to any related video, long, Short, or Live, public or private 🤳 Get a one-click, Remix-style button right on the Short 🤔 Use it to bridge Shorts to long-form, link multi-part Shorts, drive to live,… pic.twitter.com/tjmYqEWEdZ — YouTube Liaison (@YouTubeLiaison) August 10, 2023

You can even link your Shorts to any related YouTube video: long, Short, public or private. It’s a great tactic to drive up subscribers on the platform that’s already considered one of the most creator-friendly around .

In Short (sorry), if you’ve been waiting for a push to get on YouTube Shorts, consider this your official friendly shove.

• If you don’t already have one, secure your YouTube channel.
• Start watching YouTube Shorts so you can get a sense of what’s popular on the platform.
• Sketch out the basics of your Shorts marketing strategy.
• Repurpose your existing short-form videos (TikToks, Reels) that have performed well on other platforms.
• Use Hootsuite to schedule your Shorts in advance and analyze their performance.

We’ve compiled research from several different sources to bring you the most data-backed predictions:

• Social Trends in Government
• Social Trends in Healthcare
• Social Trends in Higher Education
• Social Trends in Financial Services
• Social Trends for Nonprofits
• Pew Research
• Google Trends

Save time managing your social media presence with Hootsuite. From a single dashboard you can publish and schedule posts, find relevant conversions, engage the audience, measure results, and more. Try it free today.

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Britny Kutuchief is the Senior SEO Copywriter at Hootsuite. She has a master's degree in creative writing. Before joining Hootsuite, she spent a decade working for digital marketing agencies as an SEO content writer. See more of her credentials on LinkedIn.

Based in Akron, Ohio, Britny spends her non-writing hours pursuing local infamy on Instagram and hiking with her Golden Retriever, Darwin.

Liz Stanton is an Inbound Marketing Strategist and associate editor of the Hootsuite blog. After years of freelance writing, she transitioned to a full-time marketing career in 2018. Before joining Hootsuite in 2022, Liz worked as a brand strategist, content editor, and digital campaign manager. She specialized in helping digital marketing agencies, B2C businesses, and SaaS startups build their brands and improve conversions through content marketing and social media.

Karolina Mikolajczyk is a Senior Inbound Marketing Strategist and associate editor of the Hootsuite blog. After completing her Master’s degree in English, Karolina launched her marketing career in 2014. Before joining Hootsuite in 2021, she worked with digital marketing agencies, SaaS startups, and international corporations, helping businesses and social media content creators grow their online presence and improve conversions through SEO and content marketing strategies.

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Thinking of buying wegovy online here’s what to know about compounding pharmacies.

Sydney Lupkin

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Jennie Smith, a seamstress at a ballet school in Kent, Ohio, had been trying to lose weight and keep it off for years. After losing 60 pounds through dieting only to gain 30 of it back, she wanted to try the new weight-loss drugs like Wegovy.

But they cost more than $1,000 a month and she didn't think her insurance would cover it.

So Smith did some research and found a cheaper version on one of dozens of online pharmacies that tout their own copies of these weight-loss drugs.

She did a virtual appointment with a health care provider to figure out the right dose, and the pharmacy sent the drug to her a few weeks later on dry ice. The price: around $300 a month.

She’s lost 40 pounds since September.

The new obesity drugs work, but it's a dilemma when people have to stop taking them

“It was like a light switch,” she says. “As soon as I started taking it, I noticed not only was I not eating, but I wasn't thinking about food.”

But it wasn’t exactly Wegovy. Smith got what’s called a compounded medicine. It’s made with the same basic ingredient as Wegovy – semaglutide – but by a specialized pharmacy, not a drug company.

With the growing demand for weight-loss drugs like Wegovy, new online companies seem to pop up every day, offering telehealth prescribing of cheaper, compounded versions of the medicines. And for some patients, they offer a reprieve from the high name-brand prices, insurance company coverage denials and drug shortages.

The convenience and cost can be appealing, but there are some risks. Here’s what to know and how to protect yourself.

1. What are compounding pharmacies and are they legit?

Compounding pharmacies exist to help patients whose needs aren’t met by existing approved drugs. The compounded drugs are not generics, nor do they go through the Food and Drug Administration’s approval process. Instead, compounding pharmacists tailor drugs for individual patients who need them and are mostly regulated on the state level by boards of pharmacy.

For instance, if a drug is only available as a pill but an elderly patient can’t swallow one, a doctor would write a prescription so that a compounding pharmacist could prepare it in liquid form.

Compounding pharmacists are not supposed to make what are “essentially” copies of commercially available approved drugs, according to the FDA . But sometimes, compounding pharmacies can legally pitch in during a drug shortage.

That’s what’s happening now. Wegovy is in short supply because the manufacturer, Novo Nordisk, can’t keep up with demand, according to the FDA .

But semaglutide — the active pharmaceutical ingredient in Wegovy — is widely available, says Scott Brunner, CEO of the Alliance for Pharmacy Compounding .

Compounding pharmacies are required to source their ingredients from FDA-registered facilities, says Brunner. “And they use some of the same FDA-registered facilities that the drug manufacturers use,” Brunner says.

2. If I buy semaglutide online, how do I know whether to trust the website I order from?

Many of the new websites offering to ship medicine to your door offer compounded versions of popular drugs made in-house or at compounding pharmacies they partner with.

Be aware that some companies selling compounded semaglutide may not be in compliance with state and federal standards.

Novo Nordisk has taken legal action against several businesses for selling compounded semaglutide that’s not up to snuff. It says it found impurities, the wrong concentration of the drug – even some products that contain no semaglutide at all.

According to a company statement, there have been hundreds of problems reported to the FDA’s voluntary adverse event reporting system associated with compounded semaglutide. As of the end of March, there were 99 hospitalizations and seven deaths. (To be sure, the brand name drugs also have hospitalizations and deaths in this database.)

When it comes to online compounding pharmacies, the National Association of Boards of Pharmacy , which represents the state regulators, has found more than 40,000 online pharmacies operating illegally or in a way they don’t recommend.

“There are legitimate pharmacies that operate online and I would say probably 5% of all pharmacies that operate online are legitimate,” says Al Carter, NABP’s executive director.

Consumers can use NABP’s search tool to see whether an online pharmacy meets its “patient safety and pharmacy practice standards, or applicable laws.”

Carter says his organization checks 200 new online pharmacies a week. But as soon as a bad online pharmacy gets taken down, another two pop up in its place. “So we just continue to do our due diligence, but it's kind of like you're on a hamster wheel,” he says.

3. How can I check if the pharmacy or manufacturer is above board?

Since websites often work with several compounding pharmacies, and NABP can’t check everything, you can do more due diligence on your own.

One thing consumers can do to protect themselves is check that their pharmacy is licensed in their state, says Brunner. The FDA has a handy page of state-by-state links .

You can also ask the compounding pharmacist where they get their semaglutide, and check this FDA database online to see if that factory is registered with the FDA. Licenses and registrations like this mean the facilities can be inspected and need to comply with safety and quality standards.

“We hear from prescribers frequently that they are being bombarded with advertisements from these so-called pharmacies that, in fact, are not pharmacies at all,” Brunner says. “So we do believe there's counterfeit activity out there. You'd best be careful. But never, never, never inject something in your body that you did not get [with] a prescription from a licensed prescriber and a state licensed pharmacy.”

If you see anyone advertising compounded “Ozempic” or “Wegovy” instead of compounded semaglutide, it’s a red flag, Brunner says. Compounders aren’t legally allowed to use the name brand in their marketing. So what else might they be doing wrong?

“Our members will never tell you that they're selling compounded Mounjaro or compounded Ozempic,” Brunner says. “They will tell you that they dispense semaglutide.”

4. Is there any risk to getting a Wegovy prescription from an online doctor instead of my regular one?

The FDA and medical experts caution it’s safest to get FDA-approved name-brand drugs through your regular doctor and in-person pharmacy. But some people may feel uncomfortable talking to their doctors because of stigma about weight.

When Jennie Smith told her primary care doctor about using compounded semaglutide purchased online, he scolded her that she should try to lose the weight on her own.

“I thought, well, dang it, why couldn't I do this through sheer willpower?” she says. “And there's just no way. There's just no way that I could have done it.”

She’s losing weight on the compounded drug and says she hasn’t had any complications so far.

Still, it is crucial for patients to keep their regular doctors in the loop, says Dr. Scott Isaacs, the president elect of the American Association of Clinical Endocrinology and a professor at Emory University Medical School.

Unlike online providers who don’t get to know you (and your medical records) in person, your primary care provider can monitor other health issues that might complicate things.

“You don't want to hide this from your doctor. I mean, they need to know,” he says. “I can tell you an example of a patient I saw yesterday that had lost significant weight and they were taking other medications … And the dose had to be adjusted significantly because of their weight loss and they didn’t know that.”

Patients on insulin, for instance, might need a lower dose as they shed pounds while using semaglutide. Too much insulin can be dangerous and lead to seizures or even death.

Isaacs also says it’s important to physically check a patient’s thyroid because the drug — brand name or compounded — has a rare side effect: thyroid cancer.

He says he’d prefer patients work with him to get a prescription and avoid online pharmacies altogether. But he knows that’s just not always realistic.

“If there is a will, there's a way,” he says.

You can contact NPR pharmaceuticals correspondent Sydney Lupkin at  [email protected] .

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Programs 2024 TechSprint: Generative AI in Housing Finance

Register to Livestream FHFA’s Generative Artificial Intelligence (AI) in Housing Finance TechSprint

Register here  to livestream Opening Day and Demo Day of FHFA’s Generative AI in Housing Finance TechSprint.

• Opening Day, beginning at 10:30 am EST on Monday, July 22, will feature remarks from FHFA leadership and keynote speakers.
• Demo Day, beginning at 9:00 am EST on Thursday, July 25, will feature remarks from FHFA leadership and keynote speakers and presentation​s from the TechSprint teams.

About th​e FHFA Generative AI in Housing Finance TechSprint

The FHFA Generative AI in Housing Finance TechSprint will be an in-person, team-based problem-solving event hosted by the Federal Housing Finance Agency’s (FHFA) Office of Financial Technology (OFT). The TechSprint will bring together technology, regulatory, housing, and consumer finance experts to identify use cases and associated control measures to support the responsible use of generative AI in housing finance.​

Partici​pants are organized into TechSprint teams and work over a three-day period to solve for problem statements centered around the question:

“How might the responsible use of generative AI promote a transparent, fair, equitable, and inclusive housing finance system, while fostering sustainable homeownership and rental opportunities?”

The TechSprint culminates in a Demo Day where each team will present its ideas to an independent panel of judges drawn from subject matter experts in government, industry, nonprofits, and academia.

The Generative AI in Housing Finance TechSprint will be held at FHFA’s Constitution Center headquarters in Washington, DC, and will run from July 22 to July 25, 2024. The application period to participate in-person at the TechSprint was open from March 20 through May 24, 2024.

FHFA Generative AI in Housing Finance TechSprint: Problem Statements

Umbrella Stateme​​nt​

Generative artificial intelligence (AI) has captured the imagination and interest of a diverse set of stakeholders, including industry, government, and consumers. For the housing finance system, the transformative potential of generative AI extends beyond technological advancement. Generative AI presents an opportunity to promote a housing finance system that is transparent, fair, equitable, and inclusive and fosters sustainable homeownership. Realizing this potential, however, is contingent on a commitment to responsible innovation and ensuring that the development and use of generative AI is supported by ethical considerations and safety and soundness.

FHFA’s Generative AI in Housing Finance TechSprint challenges participants to address the question,  “How might the responsible use of generative AI promote a transparent, fair, equitable, and inclusive housing finance system while fostering sustainable homeownership and rental opportunities?”​

TechSprint participants will demonstrate:

• A key  use case  for generative AI in one of the four areas of focus provided below; and
• Recommended  control measures , incorporating​ careful consideration of the associated risks.

Focused Statements ​

The four areas of focus are as follows:

• Consumer Experience:  How might generative AI be used to further educate and empower prospective homebuyers in evaluating, comparing, and obtaining a mortgage loan and in sustaining their homeownership over time?
• Assessing Creditworthiness:  How might generative AI be used to improve the evaluation of homebuyer credit, as well as the fairness of the credit decisions related to mortgage loans, particularly for homebuyers from underserved communities?
• Operations:  How might generative AI be used to enhance the efficiency and effectiveness of operational processes within the housing finance system, from origination to servicing and secondary market activities?
• Risk Management and Compliance:  How might generative AI be used to enhance the effectiveness of risk management and compliance processes within the housing finance system?

Have additional questions about the 2024 TechSprint?  Please contact OFT at  [email protected] . To learn more about OFT, please visit  the OFT home page . And to learn more about FHFA’s inaugural TechSprint held in 2023, please visit the  Velocity TechSprint webpage .​​

Page Last Updated: May 28​​, 2024​​​​​