How To Write Market Research Proposal: Tips and Best Practices

How To Write a Market Research Proposal

When drafting a market research proposal, you can adopt various styles depending on the industry or business. But to put forth a more organized proposal, it helps to adhere to proven structures and follow these steps.

1. Start with an overview

It’s always wise to open with an overview to give the readers of the proposal a general idea of what the market research is all about, as well as set their expectations. If you don’t want to use the term overview, you can also go with an executive summary or an introduction.

You can do a simple overview consisting of one to three paragraphs. Or if the situation calls for it, you can also present your executive summary with supporting information that may include any or all of the following:

• Definition of terms. List the terms that will be used in the market research proposal. Make sure to define them properly.
• Market conditions. Give an overall picture of the current market conditions. Explain the industry’s state and the competition level, as well as mention relevant economic or even political factors.
• Strengths, weaknesses, opportunities, and threats (SWOT) analysis. You can also present market conditions through a SWOT diagram, which summarizes everything neatly.
• Feasibility. If you want to cut to the chase, state the overall feasibility. You can also consider including the potential ROI (return on investment).

2. Define the objectives

When writing a market research proposal, define the project’s goals as clearly as possible. You can begin with a larger, encompassing objective and then break it up with its corresponding parts. 

If you are dealing with multiple goals, make sure to explain how each separate objective relates to or affects one another.

Remember that clearly defined goals will guide the execution of the market research project – from the budget to the types of surveys or questions you will use.

3. Outline the execution

Market research can be accomplished in various ways, but there needs to be a clear plan for executing it.

Outline your methodology and approach to getting the information you need. As far as methods are concerned, you can choose from options like organizing focus groups, deploying online surveys, or holding interviews over the phone or face-to-face.

You should also consider if your approach is multi-faceted. Will the surveys be done once or through a series of batches? Will you follow up on the first wave of interviews with email surveys? 

Never forget to include the rationale for choosing your methodology. Factors to remember include costs, logistics, and timeline.

4. Explain how the results will be analyzed and reported

Market research proposal creation would be incomplete without including the mechanics for analyzing and reporting the results.

You must present a concrete plan for how the market research data will be collected and safely stored. 

Next on your list is to explain how the data will be analyzed. Of course, what comes after is the reporting part. It’s more than just presenting the facts. You should also include your interpretations and, more importantly, your recommendations.

5. Discuss the timeline, costs, and conditions

Market research takes time and isn’t free. So, you’ll need to define your timeline and expected costs clearly.

It’s also important to tackle the terms and conditions of the market research project. The more transparent you are, the more you can prevent misunderstandings in the future.