Formal market research refers to the process of collecting and analyzing data to gain insights into the market, customers, competitors, and industry trends (Starostina et al., 2022). This research is typically conducted using formal research methodologies and techniques, such as surveys, focus groups, interviews, and observational studies (Scafuto et al., 2021). Here are the basic steps involved in conducting formal market research:
Firsly, define the research objectives: Define the study objectives first. They should be clear, quantitative, doable, pertinent, and time-bound (Shamsuddin et al., 2022). This will help you focus your research efforts and ensure that you are collecting data that will be useful in achieving your business goals (Celine (CX) Roque, 2020).
Secondly, design the research study: Determine the research methodology that you will use to collect data (Wasik & Rusli, 2022). This could include surveys, focus groups, interviews, or observational studies (Mindell et al., 2021). Also, design the research instrument or questionnaire that you will use to collect data (Sutherland et al., 2013).
Thirdly, recruit participants: Depending on the research methodology you choose, you may need to recruit participants for your study (Pritchard, 2021). This could involve reaching out to customers, industry experts, or other relevant stakeholders (Pritchard, 2021).
Fourthly, collect data: Conduct the research study and collect data using the chosen methodology (Liu et al., 2022). Be sure to follow ethical guidelines and ensure that participants' data is kept confidential (Cuschieri, 2022).
Fively, analyze data: Data must be examined once it has been gathered in order to learn more about the study goals (Wu & Poo, 2020). This may involve statistical analysis, data visualization, or other techniques (Du & Yuan, 2021).
Sixly, draw conclusions and make recommendations: Based on the data analysis, draw conclusions and make recommendations to inform business decisions (Krause-Jttler et al., 2022). This may include identifying market trends, customer preferences, or opportunities for growth (Hibti et al., 2019) .
Finally, communicate findings: Communicate the research findings to stakeholders in a clear and concise manner (Santesso et al., 2020). This could include creating reports, presentations, or other materials that effectively convey the key insights and recommendations (Santesso et al., 2020).
In general, global marketers may need to modify the conventional market research approach to take into consideration cultural and language variations in the areas they are researching, as well as variations in data accessibility, legal requirements, and communication preferences (Ekebas-Turedi et al., 2021). They may also need to use different tools and techniques to collect and analyze data that are appropriate for different markets (Kumar, 2020).
6.4 Headquarters' Control of Market Research
Headquarters, or the central management of an organization, typically has a significant role in controlling market research activities (Mwangi et al., 2022). This is because headquarters often have the authority and resources necessary to plan, fund, and coordinate market research efforts across multiple business units or regions (Sylvia & Terhaar, 2023). Here are some ways in which headquarters may control market research:
