- Definition: Market research refers to the process of gathering, analyzing, and interpreting information about a market, product, or service to make informed business decisions.
Distinguishing Market Research from Marketing Research
- Market research is a subset of marketing research that focuses specifically on understanding the needs, preferences, and behaviour of consumers in a particular market.
- Marketing research, on the other hand, is a broader term that includes all types of research related to marketing, including market research, product research, and advertising research.
Features of Market Research
- Marketing research-can be divided into two:
- Primary research: gathering new data directly from consumers or other sources through methods such as surveys, focus groups, and observation.
- Secondary research: analyzing existing data from sources such as government statistics, trade publications, and competitor reports.
Importance of Market Research
- Identify consumer needs and preferences: Market research helps businesses understand the needs and preferences of their target market, which allows them to develop products and services that better meet those needs.
- Reduce risk: By conducting market research, businesses can assess the viability of a product or service before investing significant resources in its development and launch.
- Stay ahead of competitors: Market research enables businesses to stay up-to-date on industry trends and consumer behaviour, giving them a competitive edge in the market.
- Improve marketing strategies: By understanding the target market, businesses can develop marketing strategies that effectively reach and engage consumers, ultimately leading to increased sales and profitability.
- Enhance decision-making: Market research provides businesses with the information they need to make informed decisions, reducing the risk of costly mistakes and increasing the likelihood of success.
