The size of the global market research industry has grown by 6% to
$76 billion in 2017. While the US remains the globe’s largest
sector for market research services, followed by the UK, the Middle
East and Asia Pacific are the fastest growing regions.
According to data sourced from ESOMAR and professional services
firm BDO (‘Global Market Research Report 2018’), spending on the
traditional market research sector grew by just 1% to $46 billion
last year, up from $44.5 billion in 2016. However, the newer and
emerging segments of the industry, such as data analytics and
AI-driven consumer research, boomed in 2017, adding $3 billion to
the industry’s roster.
Companies that provide market research services help their client
gather and interpret information about individuals or
organisations, with the insights (market size, competition, market
need, consumer behaviour, etc) leveraged to shape strategies and
marketing/sales activities. To come to their findings, market
researchers use a range of both qualitative techniques such as
focus groups, in-depth interviews, and ethnography, as well as
quantitative techniques such as customer surveys, analysis of
secondary data and statistical / analytical methods.
Factors that can be investigated through market research include:
Market information: Through market information one can know the
prices of different commodities in the market, as well as the
supply and demand situation. Market researchers have a wider role
than previously recognized by helping their clients to understand
social, technical, and even legal aspects of markets.
Market segmentation: Market segmentation is the division of the
market or population into subgroups with similar motivations. It is
widely used for segmenting on geographic differences, demographic
differences (age, gender, ethnicity, etc.), technographic
differences, psychographic differences, and differences in product
use. For B2B segmentation firmographics is commonly used.
Market trends: Market trends are the upward or downward movement of
a market, during a period of time. Determining the market size may
be more difficult if one is starting with a new innovation. In this
case, you will have to derive the figures from the number of
potential customers, or customer segments.
SWOT analysis: SWOT is a written analysis of the Strengths,
Weaknesses, Opportunities and Threats to a business entity. A SWOT
may also be written up for the competition to understand how to
develop the marketing and product mixes. SWOT method helps to
determine and also reassess strategies and analyze business process
PEST analysis: PEST is an analysis about external environment . It
includes a complete examine of a firm's Political, Economical,
Social and Technological external factors. which may impact firms
objective or profitability. They may become a benefit for the firm
or harm its productivity.
Brand health tracker: Brand tracking is way of continuously
measuring the health of a brand, both in terms of consumers’ usage
of it (i.e. Brand Funnel) and what they think about it. Brand
health can be measured in a number of ways, such as brand
awareness, brand equity, brand usage and brand loyalty.
Another factor that can be measured is marketing effectiveness.
Customer analysis (Segmentation of target customers)
Marketing mix modeling
Simulated test marketing