What is Market Research?
- Content Type:
- Glossary
Market Research Definition
Market research is any organized effort to gather information about customers, competitors or markets for purposes of business decision making.
Market research is the process of gathering, analyzing and interpreting information about a market including information about the target audience, competitors and industry trends. It aims to understand consumer needs, preferences and behaviors to guide business decisions and strategy development.
Who relies on market research?
Market research is relied upon by businesses, product managers, marketing teams, entrepreneurs, investors and policymakers. It’s essential for any organization looking to make informed decisions about product development, marketing strategies, competitive positioning or market entry.
What are key aspects of market research?
Key aspects of market research include:
- Data collection: Gathers information through surveys, interviews, focus groups and secondary sources.
- Analysis: Examines data to uncover patterns and insights.
- Segmentation: Identifies distinct consumer groups within a market.
- Competitive analysis: Evaluates competitors' strengths and weaknesses.
- Trend identification: Tracks changes in consumer behavior and industry developments.
Why is market research important?
Market research is important because it helps businesses understand consumer needs, assess market opportunities and reduce risks in decision-making. By providing insights into market dynamics and competition, it allows companies to create effective strategies, optimize marketing and improve product offerings to meet customer demands.
How is market research used?
Market research is used to guide product development, inform marketing strategies, assess demand and measure customer satisfaction. Businesses use it to identify target audiences, evaluate potential markets, refine products and improve customer experiences, ultimately leading to better decision-making and higher success rates in competitive markets.