Businesses strive daily to provide what customers want. Their success depends mainly on how well they understand the needs and motivations of their target audience. 

In the past, this frequently translated into a scattershot approach to meeting customer demands—build more products, design more features, and so on—with, at best, a goal of growing sales. 

But this slapdash strategy occasionally resulted in overspending, overcommitment of resources, and other strains on business operations that could threaten the business’s existence. 

The organised process of data collection in market research has changed all that. Now the focus is on collecting and analyzing high-quality data—information relevant to meeting customer demands—and how this data is obtained. The goal is the “systematic method of collecting and measuring data gathered from different sources of information,” as Medium notes, adding that an “accurate evaluation of collected data can help researchers predict future phenomenon and trends.”

Broadly speaking, there are two chief forms of data:

  • Primary data refers to first-hand information gathered straight from a primary source. 
  • Secondary data encompasses information found in public records, trend reports, market statistics, etc. 

Armed with high-quality data, businesses can better understand their prospective customers—what they want, what they already like, where they conduct their research, and much more. Companies come away with a deeper grasp of their markets, how their products will benefit that market, and the potential challenges they may face later. 

At its best, market research offers a blueprint of how a brand can move forward while avoiding the pitfalls it might otherwise encounter (without the benefit of high-quality data). 

It’s helpful to remember that a wealth of relevant data may already exist in your company. Information gleaned from business analytics and customer service scores offer vital insights into why consumers act the way they do. It’s an excellent place to begin research and avoid any duplication in data mining. 

What sources of data collection work best? What should brands know about the methodologies employed to acquire and measure such data?

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The Value of Quantitative and Qualitative Data

Within the broader scope of primary and secondary data, there are other aspects of data collection worth noting:

  • Quantitative research relies on hard facts and numerical data to gain an objective view of consumer opinion. In general, this approach focuses on uncovering insights about large groups of consumers or the population as a whole. It enables brands to easily compare purchasing and other behaviours of different groups (age, gender, market) and to identify potential buying trends on the horizon. 
  • Qualitative research is less concerned with statistics and trends and more focused on the “human” aspect of buying. This research digs deep into the more intangible and subjective reasons why customers behave the way they do. 

As we have noted before, “People are complex and often unpredictable,” so qualitative research “means getting to know your customers and their motivations better.” As a result, brands can more effectively study customer pain points and barriers to consumer use while also guiding the way to a more personalised approach to marketing.

Where Qualitative Data Comes From

So, what are the sources of data collection? Here’s a quick rundown:

Focus groups. A group consisting of a small number of customers (usually no more than 15) meets to discuss a specific issue. Information derived from this approach often leads to rich insights around consumer attitudes and behaviours, underlying motivations, and perceptions about a brand. 

One-to-one, in-depth interviews. Researchers talk to consumers directly, seeking to understand participant opinions better. This method can be in the form of face-to-face interviews and phone or online interviews. 

Expert interviews. Industry experts are another rich source of data collection. Leveraging their knowledge through expert interviews can help brands explore the impact of emerging trends, thus helping to “future-proof” their business. 

Ethnography. In this realm, researchers immerse themselves in customers’ worlds to learn more about the role brands and products play in their daily lives. This can entail visiting consumers and accompanying them as they go about their day or through self-ethnography, where consumers take on video tasks to show us how they live. 

Online communities. Through an online platform, consumers undertake individual or group tasks that enable researchers to explore potentially sensitive issues and better grasp the attitudes and values that lead to that all-important decision to purchase a product or service. 

The personalized focus of qualitative research goes hand-in-hand with more quantitative research methods, adding context and depth to more numerical and data-based metrics.  

Survey Research Plays a Key Role

Sending out surveys is another key method for drawing insights to understand target customers or explore a new market. Surveys can be conducted in a variety of ways, including:

  • Email. This approach offers the benefit of reaching many people at an affordable cost.
  • Phone. Phone surveys are helpful for researchers seeking feedback from a particular demographic, i.e., older consumers who may not use online resources. 
  • Post. Postal surveys are another option, though of increasingly limited use. Prohibitive costs and a long time lag for responses often rule out this approach.
  • In-person. This method is useful when researchers want to know more about how consumers physically interact with a product or a similar situation. Again, the costs and logistics of this approach make it a less appealing process in general.  

These days, online surveys are often the primary method for collecting quantitative data. Existing customers can complete online surveys or respondents sourced from online panels (groups of people matching a brand’s target market who agree to participate in online research). Based on the results, brands can build accurate representative samples and extrapolate findings to the broader population. 

When it comes to quantitative research, survey questions usually include closed rather than open questions. For example, a survey participant being asked, “How satisfied are you with our delivery policy?” would be restricted to answers such as “Very satisfied/Satisfied/Don’t Know/Dissatisfied/Very Dissatisfied.” This method generates data that can be categorized and analyzed in a quantitative, numbers-driven way. 

How Technology Facilitates Data Collection  

Social media has emerged as a valuable source for insights into consumer perceptions and behaviours. Platforms like Facebook, Twitter, Instagram, and others have potentially vast data reservoirs on a target audience. 

On social media, consumers provide direct, unfiltered feedback about their needs, emotions, pain points, and hopes for the future. These platforms offer a relatively easy and inexpensive way to share surveys and questionnaires and enlist participants for upcoming focus groups.

In this respect, “social listening” offers an expedient method of gauging customer sentiment—what they like and don’t like about the buying experiences, preferences regarding how a purchase is made, and so on. 

Technology also makes it possible for researchers to dramatically expand their horizons, connecting with audiences in far-flung areas of a brand’s home country and around the world. Researchers can conduct real-time interviews and focus groups with consumers in multiple time zones using tools like Zoom and Skype. In this way, data collection for international research often yields a more powerful and richer understanding of consumer behaviour. 

Working with a Research Partner

It’s crucial to remember that every customer group is different. Some brands have a strong command of their markets and may conduct research on their own.

For many other brands, partnering with a professional research firm is the best approach to broad-based marketing research. At Kadence, we draw upon our extensive toolkit of qualitative and quantitative methodologies for a deep understanding of the needs of these under-served communities. The result is:

  • More productive research
  • Valuable insights into different demographics
  • Gaining a step on the competition 

By bringing companies closer to their customers, a third-party research firm can embed rich understanding across your organisation and promote more effective, customer-centric decision-making. This understanding often leads to more informed marketing strategies and greater success with untapped consumer populations.

Entering a domestic market is one thing, but expanding overseas is something else entirely. Moving to a new, international market comes with a range of unique challenges that require a strategic approach with empirical methods.

It’s crucial to understand and anticipate these differences to avoid nasty surprises and give yourself the best chance of success when entering a foreign market. This article will explore the key differences between market research in international and domestic markets.

How are international and domestic market research similar?

While the differences are vast, there are also some areas where domestic market research is similar to its international counterpart.

For example, certain research methods work well in both environments. Interviews, surveys, focus groups, secondary research, and experiments work well domestically and internationally. The way you analyse and process the data you collect will also stay roughly the same.

That said, the actual day-to-day process of market research in an international environment can sometimes be drastically different from what you’re used to back home.

What are the differences between domestic and international market research?

1. It’s a different culture.

No matter how similar, every international market has nuances in its culture. This culture may be akin to your home market, like the US and Canada, or radically different, like the UK and Japan. But even with very similar cultures, there will still be significant differences to consider.

Here are some ways cultural differences can impact market research:

  • Language. Interacting with the people in your market, understanding the culture, and conducting research are all much harder in a foreign language. You’ll often need to hire translators to communicate effectively, and it’s easy for crucial details to get lost in translation. Note – this also includes different dialects within the same language.
  • Expectations and preferences. A product or service that works exceptionally well in your domestic market may fail dismally abroad simply due to different tastes and cultural norms. Understanding this will need to be a key part of your research.
  • Causing offence. It’s essential to respect the local culture in your target market and avoid offending with your research techniques. Everything from linguistic choices to the clothes you wear should be considered and researched beforehand.

Your research must be carefully designed to address these concerns and also work within them — certain types of research may not work very well in an overseas market.

2. There may be infrastructure issues.

If your business is based in a developed, industrialised part of the world, you may take some aspects of market research for granted. Things like reliable postal services, easy access to large venues for focus groups, and widespread internet connectivity are not a given in many parts of the world, which can significantly impact your research.

Working in a new overseas market entails new infrastructure challenges. For example, in a country with poor smartphone coverage, you’re unlikely to have much success with in-app surveys or SMS questionnaires. These challenges can quickly mount up and lead to unexpected delays or setbacks in your research.

3. International market research involves higher risk.

Overseas markets involve more variables than domestic ones, so there is more scope for failure. The good news is that you can tap into more potential growth in an international market, but this extra reward comes at a higher risk.

Many overseas market entry attempts fail because there is so much more to be aware of and so much that can go wrong. Failing to anticipate certain conditions or challenges, like slower transport and shipping, can lead to major delays and significant losses.

You’re entering what might be a completely different market from anything you’ve known before, with a huge amount to prepare and consider. This means research is essential and must be much more rigorous than your home market. It would help if you did everything possible to anticipate risks and minimise your chances of failure.

4. International market research comes with a higher cost.

Conducting market research always costs money, and that cost can be substantially higher in a foreign market than at home. There are several reasons for this:

  • You need to do more research in general to gain a solid understanding of a completely new and different market.
  • You need to hire a range of staff on the ground like translators and people to carry out various research tasks. Unlike in your home market, where you can repurpose some of your employees, you need to vet and hire entirely new people in a new country.
  • You need to hire venues. Again, you can’t just use your premises if you haven’t established a presence in your target market, which means you’ll need to hire and pay for venues like conference centres for research activities like focus groups.
  • You need to build an entirely new research infrastructure from scratch. This includes planning postal campaigns, building software for in-app surveys, collecting email addresses, and much more.
  • Setbacks will happen. Doing anything in a new foreign market is complex, and you’ll encounter many delays, unexpected problems, and barriers at first. These can significantly disrupt your research efforts, costing time and money.

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5. You need to understand your competitors more than ever.

It’s always necessary to understand your competition, which is a key component of any market research process. Unlike a domestic market, many of your competitors may be completely unknown to you in a new international market.

To stand a chance of success in your target market, you need a firm understanding of why your competitors are successful. Who do they appeal to? What needs do they address? What have they done recently? What are their vulnerabilities? And, of course, what can you do better? Understanding your competitors should be a central part of your market research when entering an international market.

One of the most important factors to consider when conducting international market research is the legal framework in your target market. For example, many countries legally require you to have research permits, and going ahead with your research without obtaining the correct permission can lead to costly penalties and setbacks.

In some cases, you may be required to provide a copy of survey questions to governments beforehand. And in many parts of the world, bureaucracy slows things down significantly, and it can take weeks for permits to be approved, which is something you have to anticipate.

7. You need to analyse and process results the right way.

In international market research, it’s not just collecting the data that matters. It’s also essential to process your results correctly, ensuring you draw the right insights and reach accurate conclusions about your target market.

To do this right, you need to understand the cultural context. For example, some cultures like America tend to be more extreme on surveys, gravitating towards one end of the Likert scale. Other cultures like China and Japan tend to prefer more neutral answers.

These differences impact not only the way you design surveys — for example, opting for a four-point scale with no middle option — but also the way you analyse results. A set of results in one culture may have different implications for your business than the same set of results in another part of the world.

8. It’s more important to work with the right research partner.

Research partners are an essential part of all market research. Their teams consist of skilled and experienced professionals with a firm grasp of research and analysis methods and how to apply them to gain valuable insights for your business. In an international market, it’s even more important to select the right research partner who already knows the new market.

Take the time to research all your options. Your chosen partner should have experience working in your target market and should have an in-depth knowledge of the various cultural, economic, legal, and social conditions.

International market research is an entirely different process from the research you’ll do at home. It comes with countless new challenges, hurdles, and risks. If you work with the right people, with the right set of skills and experience, you’ll maximise your chances of success and give your business the best possible chance in your target market.

At Kadence, we have experience doing international market research for clients worldwide. Contact us to find out more about how we can help you. 

Want more information on conducting international research? Read The Essential Guide to Conducting International Research here.