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10 min

How to conduct a healthcare market study in 8 simple steps

Learn how to conduct a healthcare market study in 8 easy steps

Feb 1, 2023


A healthcare market study is a process in which the company gathers and analyses data about its customers, competitors, and industry trends. It helps businesses to understand their target market better in terms of demographics, needs, buying behaviour, and other important factors. This can help them to make informed decisions about future strategies.

As a healthcare provider or company, your main objective is to serve your patients with high-quality services at a competitive price that also maintains profitability for your organisation. Having clear insight into different segments within the healthcare market will help you achieve this goal much more efficiently. However, gathering such data can be quite challenging especially when there are so many variables involved.

The following guide will explain step by step how you can perform a market study within 8 simple steps:

1. Define your market analysis objectives

The first step in conducting a healthcare market analysis is to define your research objectives. The first part of this process involves defining what you want to know, why you're doing the research and what main questions need answering. For example:

  • What are the key opportunities for growth within our current market?
  • Which areas should we focus on as we grow our business into new markets or countries?

Once you've identified these objectives, it's important that they're communicated clearly throughout all stages of your project. This is so that everyone involved knows how their work fits into the bigger picture.

Before you can begin to gather information, it's important to define the problem. What are you trying to accomplish? What does success look like? How will you know when your goals are reached?

The goal of a healthcare market study is not always obvious at first glance. It might be something as simple as "we want more customers" or something as abstract as "we need better policies." However, if your business doesn't have any clear objectives in mind when conducting its research (e.g., "our customers are unhappy with our services") then there's no way of knowing whether or not your findings will have an impact on their happiness levels or purchasing habits.

2. Gather information about your target market

To get started, you must first gather information about your target market. This will include knowing who they are and what they want from their healthcare provider. It also involves understanding the market you are researching, competitors, and industry trends. In addition, you need to consider regulatory issues such as privacy laws or local regulations at this stage of the process.

3. Define your market analysis scope

Before you can start your healthcare market analysis, you need to define the scope of the study. This means identifying what information you want to know and where it will come from.

The first step in defining your market analysis scope is deciding on which topics will be included in your research. For example, if you're looking for information about patient satisfaction rates at hospitals in New York City, then that would be a good topic for inclusion as part of this project. 

4. Identify potential respondents for your healthcare market study

The first step of your healthcare market study is to identify the potential respondents. You need to define the target audience and to understand the needs of your potential customers.

5. Segment your audiences

The next step is defining market segmentation, which involves identifying different groups within your target market based on demographic factors such as age, gender, and location. For example: if you're selling health products for seniors aged 65+, then you could segment this group into three segments: 65-69 years old; 70-74 years old; 75+ years old. Segmentation is the process of dividing a larger group into smaller, more homogeneous subgroups. This helps you to understand your customers better and to target them more effectively. It is a key part of any market research study.

You can segment by age, gender, or geography. It depends on what information you need from your audience in order to make informed decisions.

You can also segment your results by demographic, geographic, and psychographic characteristics. This allows you to understand your customers better. You can also determine which segments are most likely to buy your product or service.

Segmentation is the process of dividing a population into subgroups, or segments, based on certain criteria. By doing so you will get information about each segment's size, demographics, and buying habits. This information will help you make better decisions about how to market to them in the future.

6. Create an ideal customer profile

In order to create an ideal customer profile, you need to define who your audience is. This can be tricky because it's often easier to assume what their customers want rather than actually asking them.

7. Create a research survey or questionnaire

A research survey is a set of questions that you ask people to answer. It can be in any format, but most often it's in the form of an online survey or paper questionnaire.

A questionnaire is simply a set of questions designed to gather information about a specific topic or issue. A questionnaire is often used as part of market research for businesses looking for general opinions about their products and services. It can also be used for academic studies that look into how different groups respond to certain stimuli (like advertisements).

8. Analyse, interpret and report the results

Once you have collected and analysed your data, it's time to interpret the results. What are they telling you? How do they compare with what you expected or hoped for? This is where a good healthcare market study will help guide your decision-making process. It will provide clear insights into how best to proceed in light of what has been learned.

How can this information be used by stakeholders at different levels within an organisation? How can they use it as they move forward with their plans or projects? What implications does it have on other areas such as HR policies, budgeting processes, and so on? These are some questions that need answering before moving on from this point in the process.

Conducting a healthcare market study is achievable in simple steps

A healthcare market study is a research project that helps you understand your target market and its needs. Conducting a healthcare market study is achievable in those simple steps:

  • Define your objectives. The first step in conducting any kind of research project is to identify what you want to achieve from it. Do you want to know how customers perceive your brand? Or perhaps, do they have specific pain points when it comes to buying products or services like yours?
  • Gather information about the target market(s). Once you've defined your objectives, it's time to start gathering data so that all respondents can answer survey questions.

You can start by finding out what the market is like in terms of demographics, psychographics, and geographic location. This will help you identify where you should focus your research efforts later on. Once you've got a basic understanding of the target market(s), it's time to start collecting data from them.

More on conducting a healthcare market study

Before you start to conduct your healthcare market study, it is important that you define your objectives. The first thing to do is decide what questions and answers you want from the research. This will help focus your efforts. It also makes it easier for others involved in the project to understand what they are looking at when they review the findings.

You should also consider how these objectives align with those of other stakeholders such as management or investors when developing them. For example:

  • What do we want to know?
  • How can we use this information?
  • Who should be involved in making decisions based on these results (and why)?

When you're conducting a healthcare market study, it's important to check for sample size. It's important to keep in mind that your sample may not be representative of the population you're trying to study, and this can lead to inaccurate findings. To avoid this problem, make sure that:

  • You're using the right sampling method (e.g., cluster sampling).
  • Your sampling frame is accurate (i.e., all members of the population have been included).
  • The size of your sample matches what it needs to be in terms of statistical power and cost efficiency.

How can you frame questions in a healthcare market study?

Now that you have an idea of what market research is and why it's important, let's look at framing questions for this type of study.

In order to frame your healthcare market study questions, first consider what types of information you need in order to make business decisions. You might want data about how many people are using specific products or services in a given area. Or you might want to know how much they spend on these items and who they are as consumers.

Your goal should be to come up with some general categories of information that will help inform your decisions. For example, "How many patients were treated at this hospital last year?" Or, "What percentage of patients have private insurance versus government-sponsored programs?"

Once you've identified these broad areas for inquiry, it's time for some fine-tuning!

While framing your research questions, consider asking yourself the following:

  • What is the purpose of the research?
  • What is the research question?
  • Who is our target audience?
  • When will we conduct this study and how long will it take to complete?

What are our budget limitations, if any (e.g., number of participants, data collection methods)?

How to get relevant data through a healthcare market study?

It's important that you have an understanding of what kind of information is available, how it can be used, who has access to it (and how much), and whether or not there are any limitations on what can be collected. This can be done through internal sources such as HR databases or marketing databases or external ones such as government agencies.

  • Collecting information from various sources requires careful planning because it involves many different stakeholders:
  • Those who own or operate these systems must agree upon how they'll share their data with researchers;
  • Researchers must decide which tools will help them extract useful insights from large amounts of raw data;
  • Project managers must coordinate efforts across multiple teams working simultaneously on separate tasks.

Once you've collected your data, take some time to analyse it before moving on. This can be done in a variety of ways depending on the type of analysis that's required:

  • Check for sample bias by examining the demographics of respondents and comparing them against current population statistics (e.g., age, gender). If there's an imbalance between the number of male and female respondents or if certain groups were underrepresented in your study (e.g., people living below the poverty line), then consider conducting another round of surveys. You can do this until you have enough data from all segments within your target audience group(s).
  • Group responses by segment (gender) or other variables such as income level so that comparisons can be made across segments instead of at an individual level only; this helps spot trends faster while reducing noise from individual outliers that may skew results otherwise.

Consider additional research methods

If you're conducting a healthcare market study, there are several other research methods you can use. Focus groups and surveys are two common ways to collect data from people in your target audience. They are best for qualitative research and interviews are better suited for both qualitative and quantitative studies.

Focus groups allow researchers to observe participants as they interact with each other in an unstructured setting. They can also be used as part of a larger qualitative study or on their own as part of an exploratory phase before moving into more formal quantitative research methods such as surveys or experiments. The key benefit of focus groups is that they give researchers an opportunity to hear from real people about their experiences using products or services in their daily lives. This is something that isn't always possible through more structured approaches like surveys (which often rely on self-reported information).

Present results to stakeholders

After you've gathered your data, it's time to present your findings. Presenting the results of a healthcare market study is just as important as conducting one, if not more so! Presenting data in an easy-to-understand way will help stakeholders make strategic decisions. It will also help them create marketing campaigns based on the information you've provided.

In addition to presenting your findings verbally, we recommend creating a deck or slide presentation that breaks down all of the key takeaways from your report. This will help ensure everyone understands what they need from this project moving forward. At the same time, it will also give them something they can refer back to whenever they need it.

Summing up thoughts on a healthcare market study

When conducting market research, the best job you can do is to ask the right questions and listen to the answers. This will help you understand your customers' needs, wants, and desires. You'll also be able to determine how they're currently being met (or not). By using this information as a foundation for decision-making, it's possible for businesses of any size or type to make better products and services; improve their marketing strategies; develop better business models, and even create entirely new markets or industries!

We hope that this guide has given you a better understanding of how to conduct a healthcare market study. As we mentioned at the beginning, it is an important first step in establishing your brand and determining its place within the industry. By following these steps carefully and thoroughly, you'll be able to create an effective market research strategy that aligns with both your goals and your customers' needs.

If you’re interested in learning more, check out ‘What is healthcare market research and why do you need it’.

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