Marketing Research 101: 5 Steps to Smarter Business Decisions and Market Success

What if your next big business move is based on data? Marketing research is a crucial tool to make data driven decisions, potentially leading to long-term success. It helps companies understand their target audience, predict trends, and avoid mistakes that could hinder success. By following a structured research process, businesses can gather data-driven insights that lead to better strategies and outcomes.

GoPro serves as a strong example of a company that has leveraged marketing research to dominate its industry. While the following examples illustrate how marketing research can be applied, they are not the exact steps GoPro followed.

5 Steps of the Marketing Research Process

Step 1: Identify the Research Needs or Questions

Every marketing research project begins with a problem to solve or a question that needs an answer. Before we continue, notice how I’m using the word “need”. We base our campaigns, targets, and other decisions on things we need to know. Making uninformed decisions is a risk, especially when resources are limited; we must also consider that past strategies may not work in today’s evolving market. Research ensures businesses make decisions based on proven data, not assumptions.

Key Questions to Ask:

·      What is your research question?

·      What will you do with this information?

·      Could you access this information in-house or through a third-party?

·      When do you need this information?

·      Does the benefit of the research project outweigh the cost of the project?

Sports enthusiasts lacked a way to capture hands-free, high-quality action videos. Traditional cameras were not built for extreme conditions, making them impractical. This insight directed GoPro's research toward designing a camera that was compact, durable, waterproof, and easy to mount. The essential (and possible) research question became: “what features do extreme sports athletes need in a camera that current options do not provide?”

Step 2: Design the Study

Once the research question is defined, the next step is determining how to collect the necessary data.

Key Considerations:

• Primary or Secondary Data (New research vs. existing reports)

• Qualitative or Quantitative (In-depth interviews vs. broad surveys)

• Exploratory or Confirmatory (Open-ended discovery vs. testing specific ideas)

It is likely that GoPro decided to conduct qualitative research by interviewing athletes, travelers, and content creators to understand their frustrations with existing cameras. In addition, they might have observed their primary targets using cameras in real-world conditions. They could have conducted quantitative research by giving surveys and/or creating a prototype for them to use it for an experimental analysis.

Step 3: Conduct the Study

This is where the data is being collected through surveys, experiments, interviews, or tracking real-world behavior. After designing the research plan, businesses must collect data through various methods.

Key Methods:

• Surveys & Polls

• Focus Groups

 • Observational Studies

• A/B Testing

This is following through with the ways they chose to gather their information (review Step 2). It is likely GoPro tested a prototype with their primary audience. If so, these users provided first-hand feedback on camera durability, image quality, ease of use, etc. The company also gathered real-world footage to analyze the different environments like water, snow, speed, etc. and how it affected video quality. This research led to improvements in image stabilization, waterproofing, and mount design. It is possible that through focus groups, customer interviews, and hands-on product testing, GoPro refined its concept and/or product design.

Step 4: Analyze the Data

Once data is collected, the next step is to interpret the findings and draw meaningful conclusions.

Key Questions to Ask:

• What trends or patterns emerge?

• How does the data support or challenge our assumptions?

• What are the key takeaways for our business?

Hypothetically speaking, GoPro discovered that athletes needed a one-touch recording feature, waterproof material, and wide-angle lenses. Additionally, customers showed a strong interest in sharing their videos online. These insights influenced product development, leading to features such as waterproof housings, improved mounts, built-in WiFi for quick video uploads, etc.

Step 5: Share the Insights

The final step is to use the research findings to make informed decisions and share key insights with stakeholders.

Key Actions:

 • Present findings to decision-makers.

• Adjust marketing strategies based on research.

• Implement changes to products or services.

It is likely that GoPro’s research did not just impact product design; it also shaped its marketing strategy. Recognizing that customers loved sharing their footage, GoPro shifted its focus to user-generated content. Instead of relying on traditional advertising, the brand encouraged customers to share their own videos, effectively turning them into brand ambassadors.

The Value of Marketing Research in Business

Marketing research provides businesses with essential insights that influence decision-making and strategy. Companies that invest in research can reduce risks, better understand their customers, stay ahead of competitors, refine their branding, and optimize product pricing and development.

In GoPro’s example, success demonstrates how research can shape a company’s direction and lead to long-term growth. Whether launching a new product, entering a new market, or refining an existing offering, research provides the data necessary to make informed and strategic business decisions.

Companies want to invest in marketing research, not only for better decisions, but to create an authentic brand via campaigns, launch, etc., to truly connect with their audience. In my opinion, a brand that is well researched should have no (big) problem selling to their primary target. We all crave authenticity and practicality, so let’s combine both.