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History of Market Research - The Research Mag
Sharekh Shaikh
June 25, 2024 • Reading Time: 6 minutes
Hi there! 👋
Sharekh here. I’m the founder of CleverX, where we’re building the instant way to recruit verified business participants for fraud-free research.
Welcome to the inaugural issue of The Research Mag! This newsletter is where I'll share my thoughts and insights on market and product research. I'm excited to have you on this journey!
In this first edition, we're exploring the rich history of market research. From its ancient origins to what it looks like now, we'll uncover how market research has evolved and why it's more important than ever.
History of Market Research
Early Examples: Ancient Rome to the Domesday Book
Market research, in some form, has been around for centuries.
Imagine the bustling markets of ancient Rome. Traders keenly observed customer preferences, gathered information on pricing, and adapted their strategies accordingly. This rudimentary form of market research helped them stay competitive and meet consumer demands.
One of the earliest and most detailed records of systematic data collection is the Domesday Book, commissioned by King William the Conqueror in 1086 A.D. (yep, that long ago!)
Domesday Book is a detailed survey and valuation of landed property in England at the end of the 11th century. The survey was ordered by William the Conqueror at Christmas 1085 and undertaken the following year.
This extensive survey documented land holdings and resources across England, providing a valuable snapshot of the economy at the time. Though not market research in the modern sense, it exemplifies the long-standing human drive to gather and analyze data.
A page from the Domesday Book.
💡 The information recorded in Domesday:
The Domesday survey was carried out by commissioners holding sworn inquests in local courts, where they asked fixed questions of local men. For each property, each question was asked three times, to cover changes over time.
Questions included in the Domesday Book
Development Through the 19th and 20th Centuries
Fast forward to the 19th century, when market research began taking on a more structured form. In the 1820s, the first opinion polls were conducted in the USA, marking the beginning of a more formal approach to understanding public opinion. By the 1890s, companies were using questionnaires to gauge consumer reactions to advertisements, laying the groundwork for modern survey techniques.
The early 20th century saw market research becoming an established industry. The period from 1910 to 1920 witnessed the rise of dedicated market research firms. By the 1930s, the practice was well integrated into business strategies, with companies like Nielsen leading the way in developing robust data collection and analysis methods.
Cover page of the first consumer market survey by Nielsen in 1929.
Key Milestones and Figures 🚨
One of the pivotal figures in market research history is Arthur C. Nielsen, who founded the ACNielsen company in 1923. Nielsen's work revolutionized market research with the introduction of audience measurement and retail index methods, which are still in use today.
The establishment of professional organizations like the Market Research Society (MRS) in the UK and the European Society for Opinion and Market Research (ESOMAR) in the 1940s further cemented the field's importance. These bodies helped standardize practices and promote ethical guidelines, ensuring the integrity and reliability of market research.
A Timeline of Market Research
What Worked 💪
Successful Methodologies and Practices
Throughout its evolution, market research has seen numerous methodologies and practices that have stood the test of time.
Surveys and Questionnaires: One of the most enduring tools in market research, surveys and questionnaires have allowed researchers to gather large amounts of data from diverse populations. The standardization of questions ensures consistency, while the ability to distribute them widely (first through mail, then telephone, and now online) has made them incredibly versatile.
Focus Groups: Introduced in the mid-20th century, focus groups provide qualitative insights that surveys might miss. By gathering a small group of people to discuss a product or idea, researchers can delve into deeper motivations and opinions. This method helps to uncover rich, detailed information that can inform product development and marketing strategies.
Observational Research: Observing consumer behavior in natural settings has provided invaluable insights. This method involves watching how people interact with products in real-time, capturing authentic reactions and usage patterns. It has been particularly effective in retail settings, helping businesses optimize store layouts and product placements.
Data Analytics: With the advent of computers and, later, the internet, data analytics has become a cornerstone of modern market research. Techniques such as regression analysis, clustering, and predictive modeling allow researchers to identify trends, segment markets, and predict future behaviors with high accuracy.
Okay, so what are the things that didn’t work?
Well, that’s a story for the next time. In my next newsletter, I'll spill the beans on the lessons we've learned and give you an exciting peek into the future of market research. You won't want to miss it!
I’d love to hear what you liked about this newsletter. Do reach out to me here.
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