Market Research

Market research is the process of gathering, analyzing, and interpreting data to gain insights to inform business decisions.

Market research involves gathering and analyzing information about the target market or industry in which the business may operate in. This information helps inform decisions and strategy on product or services, pricing, promotional activities, and customer service. It also helps identify opportunities such as future trends or target market segments. Market research involves either primary or secondary sources. Primary sources are data that the business collects from their customers or potential customers. These can include surveys, focus groups, interviews, and observational studies. Secondary sources are data collected by outside sources, such as government or industry organizations. This type of research typically provides higher level overviews, such as marketing trends or customer demographics.

Whatever the source, the primary goal of market research is to develop insights that allow the company to make informed decisions on how to best serve their market.

For example, a business selling outdoor gear may conduct research on the sports and activities their target market participates in, how much they would be willing to pay, and what kinds of features are important to them. They can then use this data to inform their product design, marketing strategies, and customer service efforts. Additionally, they can use the insights they gain to spot trends that could lead to potential growth opportunities, such as creating a new line or expanding into a new market.