7 Essential Steps in the Market Research Process for Startups and SMEs
Imagine launching a product, and later realizing it has no real market demand; or the competitor released the product/service with better features, attractive pricing and on-point marketing – resulting in losing the target market. All your money and hard work are gone! Something no business wants to face.
Well, the good news is, India’s digital ecosystem now makes it much easier to test ideas before launching them through an effective market research process. As of March 2025, India has 969.10 million internet subscribers (Telecom Regulatory Authority of India), a goldmine for cost-effective research and rapid validation.
Whether you’re a startup, SME, or a mid-sized tech company, a structured market research process can save you from a lot of guesswork. It helps you make smart decisions, reduce risk, and actually use your resources efficiently.
Here’s a practical roadmap of the seven essential steps in the market research process designed for Indian businesses that want to make data-driven choices without losing their customers to competitors.
What Is Market Research Process?
The process of bridging the gap between “what business think” people want and what they actually want, is typically known as Market Research Process. It helps companies in making wiser business decisions in terms of – product market fit, identifying target persona, price sensitivity, etc. The market research is applicable on general consumers, competitors, and even customers.
It is an important technique for Indian startups and tech companies to identify new opportunities, determine market potential, and optimize go-to-market strategies.
A prime example in the sector is Kodak, which was photography’s leading industry player. In 1975, its engineers created the first camera but delayed commercialization, afraid it would cannibalize film sales. Rivals Sony and Canon took advantage, seizing the market for digital cameras. Kodak’s failure to transition to evolving consumer demands ultimately caused bankruptcy in 2012. This serves to illustrate the dangers of dismissing market direction and customer research for companies. (HBR)
Market Research Process 7 Steps Every Indian Business Should Follow
If you are a start-up founder who doesn’t like theory and talks about the action, here’s a clear, seven-step approach to conducting effective market research process:
Step 1: Define the Real Problem
Every expert market research process starts with a question. Not a vague question, but something clear and specific, like: what problems or challenges people in general are facing in their day-to-day routine, and how my organisation can solve it? What could be the factors that influence people to buy in this category? Or what will motivate loyal customers to switch from already using the brand to mine?
Defining your question and goals upfront saves a lot of time later. Also, make sure your research follows a SMART goal (specific, measurable, achievable, relevant, and time-bound) to help you get deep insights.
Step 2: Make Your Research Plan
Now the task is to figure out how you will gather data to answer the question that you have defined in the first step. This step in market research process involves:
- Primary research: consider surveys, interviews, maybe a focus group
- Secondary research: includes already published data that are available in the market, like industry reports, government data, and competitor analysis
We have covered in detail, types of market research every start-up and SME founder should be aware of.
Also, decide your sample size, methods, budget, and timeline. Startups can rely on credible sources like IBEF, Startup India, or DPIIT reports. This step helps explain the marketing research process clearly to your team, so everyone knows what to measure and how to do it.
Step 3: Craft Useful Market Research Surveys
Surveys are usually the mainstay of primary research. To ensure insightful results:
- Use brief, straightforward, and neutral questions.
- Make the completion time less than 10 minutes.
- Translate surveys to local languages for accessibility.
- Run a pilot test to recognize confusion or bias.
For example, a Mumbai-based food entrepreneur may hold a hold a preference poll for vegan dishes for an effective restaurant business plan. Google Forms, Typeform, or ThinkSurvey make it easier to create, distribute, and analyze surveys.
Step 4: Collect Data from Real People
Genuine and authentic data collection is the backbone for a successful market research process. Make sure to:
- Target representative sampling
- Keep an eye on response rates
- Check sample quality
Essential must-haves every start-up and SMEs should have before starting data collection for expert market research.
Step 5: Interpret and Analyze the Results
Raw numbers alone are useless. You have to actually interpret them for an ideal market research process. Look for patterns with percentages, averages, or regression for quantitative analysis. Also, don’t ignore qualitative responses, they often tell stories that numbers can’t.
Example: if 64% of respondents prefer cost of eco-friendly product as a major factor for their willingness to purchase, that’s a pretty clear signal for pricing strategy to play a major role while formulating eco-friendly business plan in India. Sometimes the open-ended comments will surprise you even more, don’t skip them!
Step 6: Turn Findings into Actionable Insights
Information is only insightful if it informs. Share findings in clear terms:
- Use charts and graphs to call out major findings.
- Don’t just report numbers. Also, describe why it’s important.
- Connect findings to business goals like user retention, product adoption, or pricing.
A SaaS business, for instance, might discover that onboarding time is linked with churn. Responding to this finding can drastically boost retention.
Step 7: Make Sound Business Decisions
Finally, convert insight into action. Implement it in marketing efforts, product design, or campaigns.
For example, if 70% of your target audience purchases products from Instagram, prioritize influencer marketing over search ads. Successful leading companies continuously conduct market research, adapting insights as markets evolve, before launching their products in the market.
Overcoming Common Challenges in the Market Research Process
This is where ThinkSurvey’s role becomes clear. Several restaurant entrepreneurs have already turned to market research for restaurant startups to strengthen their business plans. For instance:
1. Budget and Time Constraints
Small startups and mid-sized firms usually have small budgets. Utilizing free data from reliable sources such as Invest India or MSME Ministry reports can help them save money and time.
2. Data Overload or Misinterpretation
Too much data without clarity can confuse teams. First, determine what metrics are truly important, such as customer satisfaction or product feedback, then communicate them to the team simply through clear visuals. That way, insights inform action, not confusion.
3. Low Response Rates
Engagement increases when surveys become more personal. Send personalized invitations, share via social networks, and provide small rewards. Surveys in local languages and established networks of trust, such as LinkedIn groups or WhatsApp business clusters, can significantly increase participation.
How To Do Market Research For A Startup?
Urgent and Inexpensive are two words startups run with. Below are some practical steps that every startup can use to perform the market research process. However, improvements can be made as per the need.
- Start your survey with very small respondent numbers, around 100-200
- Don’t just depend on one; mix surveys, interviews, and online analytics for a better picture.
- If needed, use some free reports from credible sources like Startup India, DPIIT, and IBEF.
- Do surveys separately in metro and tier 2 cities to capture local variation, as they may behave differently.
- Learn from each round and refine your approach.
For example, an AI SaaS startup might begin with LinkedIn polls to test interest, then run a structured survey for deeper insights, which is cost-effective and fast.
Are You Getting The Best From Market Research?
A robust market research process converts uncertainty into a definite strategy. Every Indian startup, SME, and technology companies need to use these steps in marketing research process to make informed, scalable choices.
Success in a high-paced market goes to those who make moves based on data, not intuition. Be small, be consistent, and be guided by insights.
ThinkSurvey helps make it simpler, translating raw feedback into actionable plans. When executed properly, the market research process is not merely a task; it’s a genuine competitive edge. Talk to our experts today. We can show you how to turn insights into action for your business.
