How do you do market research?
Contents
- Overview
- Difference from a customer survey
- Difference from market analysis
- What is it?
- Why do it?
- When should you hold off?
- Purpose and goals
- Primary and secondary data
- Choose the right method
- Choose the audience and sample
- Channel and execution
- How to write good questions
- Ready-made example questions
- Send it to the right people
- Examples
- Template
- What does it cost?
- Response rate and non-response
- GDPR and ethics
- AI in market research
- Analysis and interpretation
- Interpreting the insights
- Reporting
- Common mistakes
- 9-step checklist
- Using the results
- For businesses
- Digital market research
- How Paloma helps you
- Frequently asked questions
- Related guides
A complete guide with examples, questions, a template and cost advice
Market research helps you make better decisions, understand your customers and find new opportunities. It shows where to direct your resources – based on facts, not gut feeling.
In this guide, you will learn everything you need to succeed: how to plan, write questions, collect data, analyze the results and use the insights in your marketing. You will also find examples, templates and frequently asked questions – all adapted to today's digital reality.
The difference between market research and a customer survey
Market research is broader and can cover the target audience, the market, competitors, trends and demand. A customer survey more often focuses on existing customers' experiences, satisfaction and needs.
Many companies start with a customer survey but need broader market research when they are launching something new, repositioning or trying to understand a new target audience.
The difference between market research and market analysis
Market research and market analysis are often used together, but they do not mean the same thing.
Market research is about collecting new information directly from people. This can be done through surveys, interviews, focus groups or user tests, for example. The aim is to understand the target audience's needs, behaviors and perceptions.
Market analysis is a broader concept. It can include market research but also builds on other information, such as industry statistics, competitor analysis, trend reports and internal data.
In short
| Concept | Focus | Example |
|---|---|---|
| Market research | Collecting new data from the target audience | A survey of customers or interviews |
| Market analysis | Analyzing the whole market | Competitor analysis, statistics, trends |
How they are used together
In practice, market research is often part of a larger market analysis. A company might start with a market analysis to understand the market and the competitors, and then do market research to test an idea or get feedback from the target audience.
Together, they give you a better basis for decisions when you want to:
- launch new products or services
- understand your target audience better
- analyze the competition
- develop your marketing
What is market research?
Market research is the systematic collection and analysis of information about the market, customers and competitors. The aim is to understand behaviors, needs and perceptions so that you can make smarter and more confident decisions.
Market research consists of four steps: planning, data collection, analysis and action.
Why do market research?
- Test new products or services
- Measure brand awareness and image
- Understand customer behavior and motivations
- Evaluate campaigns and marketing
- Map competitors and trends
The results help you reduce risk, prioritize the right things and improve the experience for your customers.
When should you not do market research?
Sometimes it is wiser to wait. Do not run a survey if:
- The purpose is unclear
- You already have enough data (e.g. from analytics or previous surveys)
- You do not plan to act on the results
- The questions risk being perceived as intrusive or sensitive
Only measure when you are ready to listen and change – otherwise you lose trust rather than gain it.
Purpose and goals – the foundation of everything
The most important step is to formulate a clear purpose.
Ask yourself: What do I want to know? Why do I want to know it? How will I use the result?
Examples of purposes
- I want to know how our brand is perceived in the public sector.
- I want to understand why some customers leave us.
- I want to test whether our new idea has potential in the market.
A clear purpose makes it easier to choose a method, write questions and analyze the right data.
Primary and secondary data – two paths to knowledge
| Type | What it means | Examples |
|---|---|---|
| Primary data | You collect new information yourself. | Surveys, interviews, focus groups. |
| Secondary data | You use information that already exists. | Statistics, reports, web data. |
It is often effective to combine both – secondary data gives an overview, primary data gives precision.
Choose the right method
Qualitative research – understanding why
In-depth interviews, focus groups, user tests. Few participants but deeper insights. Good for exploring language, perceptions and motives.
Quantitative research – measuring how much
Surveys, panels, web surveys. Gives figures and patterns in large groups. Good for comparing and following developments over time.
Explanatory research – analyzing relationships
Combines quantitative data with hypotheses, for example whether price affects customer loyalty. Often requires more data, but gives clear relationships.
Choose the target audience and sample
Target population: the whole group you want to learn about.
Sample: the part you actually ask. Better 200 relevant answers than 2,000 random ones.
How big should the sample be?
| Type of survey | Recommended number of responses |
|---|---|
| Internal customer survey | 100–300 |
| B2B market | 200–400 |
| Consumer market | 400–800 |
| National survey | 1,000+ |
The more variation in the target audience, the more responses you need to draw reliable conclusions.
Channel and execution
| Channel | Advantages | Disadvantages |
|---|---|---|
| Web survey | Cheap, fast, scalable | Risk of non-response |
| Personal, easy to follow up | Requires good lists | |
| Phone interview | High response quality | Time-consuming |
| Focus group | Deep understanding | Fewer participants |
| Social media | Low threshold, wide reach | Not always representative |
Tip: Always send at least one reminder – it can raise the response rate by 30%.
How to write good questions
Basic principles:
When you create a survey for your market research, the way you construct the questions is crucial. Ask one question at a time, use short, clear language and neutral wording, with answer options that cover everything. Put the easy questions first and the personal ones last.
Want a deep dive into how to do this in practice? Read our big guide to creating a successful survey.
| Type | Example | When to use it |
|---|---|---|
| Yes/no | Have you heard of us? | Fact-based |
| Multiple choice | Which channel do you use most often? | Mapping behaviors |
| Scale 1–10 | How satisfied are you? | Measuring attitudes |
| Ranking | Which factors are most important? | Prioritization |
| Open question | What would you improve? | Nuances and ideas |
Pilot test the questions on 5–10 people before sending them out.
Questions for market research – ready-made examples
Awareness
How do you know about the company or the product? Which brands in the category do you recognize?
Perception
How would you describe us in three words? What sets us apart from others?
Usage
How often do you use our product or service? How did you find us the first time?
Experience
How satisfied are you overall on a scale from 1 to 10? How well does the product meet your expectations?
Improvement and loyalty
What could we do better? How likely is it that you would recommend us to others?
Send the survey to the right people
Market research only gives good answers if it reaches the right people at the right time. Send it to your own customer list via a newsletter, and remind those who have not replied with an SMS mailing. That way, you get more responses than if you only post a link.
Paloma is a Swedish platform for newsletters, SMS and events that has been around since 2003. You can try it for free with up to 250 emails a month.
Examples of market research
- Customer satisfaction survey – a short web survey that shows strengths, weaknesses and areas for improvement.
- Brand tracking – a quantitative survey that follows awareness, associations and image over time.
- Concept test – a focus group or survey that reduces the risk before a launch.
- Price analysis – for example using the Van Westendorp method, to find a reasonable and profitable price range.
- Communication analysis – a survey combined with channel data to understand what gets through and why.
Template for market research
| Step | Description | Example |
|---|---|---|
| 1. Purpose | What do you want to know, and why? | Measuring awareness in industry X |
| 2. Target audience | Who should answer? | Decision-makers in small businesses |
| 3. Method | How do you collect the data? | A web survey sent via a newsletter |
| 4. Questionnaire | Which questions do you ask? | 10 short questions, 2 of them open |
| 5. Data collection | How is the survey distributed? | Email and social media |
| 6. Analysis | How are the answers interpreted? | Frequencies and themes |
| 7. Report | How is the result shared? | A PDF and an internal presentation |
You will find more ready-made questions for customer surveys, events and customer satisfaction surveys among our survey templates.
What does market research cost?
| Type | Cost (approx.) | Comment |
|---|---|---|
| Internal digital survey | 0–5,000 SEK | Your own time and tools |
| External panel | 10,000–50,000 SEK | Depends on the number of responses |
| Qualitative interviews | 1,000–3,000 SEK per interview | A consultant or agency |
| Full-service research | 50,000–250,000 SEK | An agency handles the whole process |
You can start small – what matters most is the quality of the questions, not the budget.
Response rate and non-response
Benchmarks:
Internal surveys: 60–80%
Customer surveys: 20–40%
General surveys: 10–30%
Do a non-response analysis if some groups are missing from the data, and supplement if needed.
Tips for more responses: Keep the survey short, ideally under 10 minutes, be clear about the purpose, send two polite reminders and thank the participants afterwards. Also feel free to read our guide on surveys.
GDPR and ethics
- Only collect what is really needed
- Inform people about the purpose, the storage period and who is responsible
- Anonymize answers when possible
- Avoid sensitive questions without a clear reason
- Delete or anonymize data after the analysis
AI in market research
- Group large amounts of free-text answers into themes
- Summarize long reports
- Identify sentiment and recurring patterns
- Create visualizations and overviews
AI does not replace human interpretation, but it can speed up the analysis considerably.
Analysis and interpretation
- Describe – summarize averages, proportions and distributions
- Compare – break down the results by target group, segment or channel
- Explain – identify the relationships behind the differences
- Conclude – decide what should be changed, improved or confirmed
How to interpret insights – not just figures
Combine figures and free text to understand why the result looks the way it does. Link the insights to the customer journey and highlight the three most important conclusions internally.
Reporting and communication
Structure: Summary, purpose and method, sample and response rate, results, conclusions, recommendations and next steps.
Feel free to add quotes to make the figures more concrete and human.
Common mistakes to avoid
- An unclear purpose
- Too many questions
- No pilot test
- A sample that is too narrow or skewed
- Overinterpreting small differences
- No follow-up or action afterwards
Checklist: 9 steps to successful market research
- Define the purpose and goals
- Decide on the target audience
- Choose a method, qualitative or quantitative
- Write the questions (and create a survey that works on mobile)
- Test and adjust the survey
- Send it out and follow up with reminders
- Collect and analyze the answers
- Report clearly
- Act on the insights
Use the results in your marketing
- Share insights in blog posts and newsletters
- Show that you listen to your customers
- Use quotes and figures in presentations and sales material
- Automate follow-ups, thank-you messages and relevant offers
Market research for businesses – common uses
Businesses use market research to reduce uncertainty and make better decisions. By collecting data from customers, target audiences or the market, you can understand what works, what needs to be improved and what opportunities lie ahead.
Here are some of the most common situations where businesses do market research:
- Launching a new service or product – test whether the idea is relevant and how the offering should be designed.
- Testing prices – understand how different price levels are perceived by the target audience.
- Measuring brand awareness – see how well known your brand is and what associations it has.
- Understanding the target audience better – gain insights into needs, behaviors and priorities.
- Following up campaigns and marketing – evaluate what got through and how the message was interpreted.
- Improving the customer experience – identify problems and areas for improvement in the offering.
Digital market research – how to do it online
Today, a lot of market research is done digitally. That makes it possible to reach many people quickly, collect answers automatically and analyze the results efficiently.
This is how digital market research can work:
- Web survey – creating a survey online is by far the most common (and most cost-effective) way to collect quantitative data today. With the right tool, you can quickly build the form and distribute it widely.
- Email mailing – send the survey to customers, subscribers or other relevant target audiences.
- Landing page or form – publish the survey on your website to collect answers from visitors.
- Reminders – one or two friendly reminders can raise the response rate considerably.
- Segmentation – divide recipients by, for example, customer type or industry for more relevant results.
- Analysis of answers – compile the answers, identify patterns and draw conclusions you can act on.
Digital market research makes it possible to gather insights continuously and quickly turn them into better decisions.
How Paloma can help you move forward
The insights are the beginning – the next step is to act.
- Send newsletters to recruit respondents
- Use marketing automation for follow-up
- Create events, collect feedback and measure engagement
- Handle everything securely under the GDPR on Swedish servers
Try Paloma for free – start gathering insights and building rewarding relationships.
Frequently asked questions: market research
What is market research?
Market research is a way of collecting data about your target audience, your customers or your market. The aim is to understand behaviors, needs and opinions so that you can make better decisions in your marketing or product development.
Can small businesses do market research themselves?
Yes, small businesses can absolutely do market research themselves. With the right questions, a clear purpose and simple digital tools, you can get valuable insights without a big budget. The most important thing is that the research is aimed at the right target audience and that the results are actually used to improve the offering, communication or customer experience.
How do you do digital market research?
You do digital market research by creating a survey or a form online, choosing who should answer and then distributing the survey via, for example, email, a newsletter, your website or social media. After collecting the answers, you compile them, analyze patterns and use the results as a basis for decisions and improvements.
What is the difference between qualitative and quantitative market research?
Qualitative market research focuses on understanding why people think, feel or act in a certain way. It is often based on interviews, focus groups or open answers. Quantitative market research instead focuses on measuring how many people think or do something, usually through surveys with answer options and larger samples.
How many responses do you need in market research?
How many responses you need depends on the size of the target audience and how reliable you want your conclusions to be. For smaller businesses, 50 to 100 responses can give useful insights, while larger studies often require several hundred. What matters most is not just the number of responses, but that they come from the right target audience.
What can you use the results of market research for?
The results can be used to improve products, clarify marketing, strengthen customer relationships and find new business opportunities. Properly analyzed data can give clear guidance in both strategic and everyday decisions.
How often should you do market research?
At least once a year is good, but with bigger changes – such as a new product, a new campaign or a changed target audience – you should do research more often.
How do you analyze the results of market research?
Start by compiling the answers, identifying patterns and comparing different target groups or segments. Highlight the most important insights that affect your decision or your strategy.
How long should market research be?
Keep it as short as possible without losing value. A good survey usually takes 3–5 minutes to complete. The shorter and clearer it is, the more people finish it.
What questions should you ask in market research?
Ask questions that help you understand the target audience: habits, needs, experiences and decision criteria. Avoid leading or double-barreled questions and use clear, simple language.
How do you do market research step by step?
Start by defining the purpose, choose the target audience, write the questions, decide on the method (e.g. a survey or interviews), collect the answers and analyze the result. Finish by drawing conclusions and planning actions.
What types of market research are there?
The most common types are quantitative research (surveys) and qualitative research (interviews, focus groups). Both are often combined to get both breadth and depth in the analysis.
Why should you do market research?
Market research helps you reduce the risk of bad decisions, identify new opportunities and understand what actually drives customers' choices. It gives you a fact-based foundation instead of gut feeling.
What does market research cost?
It depends on the method and scope. A digital survey that you send yourself to your own contacts costs essentially only your time and the tool you use. If you hire a research company for sampling, interviews and analysis, the cost is considerably higher. Start by deciding which decision the research should support, and it becomes easier to choose the right level.
What is the difference between market research and a customer survey?
Market research looks at the whole market: potential customers, needs, competitors and willingness to pay. A customer survey is aimed at people who are already customers and measures how they experience your product, service and relationship. The first helps you find new opportunities, the second helps you keep and develop the customers you have.
Related guides and resources
- Survey guide – questions, method and analysis
- What is a customer journey? How insights and flows fit together
- Personalization, segmentation and dynamic content
- Newsletters – create and send professional mailings
- Marketing automation in Paloma – activation and follow-up
- Try Paloma for free
Try Paloma's platform for free
Create your first newsletter in minutes. The free account gives you 250 emails a month with an unlimited number of contacts.
Create a free account