Definition: Defining the Meaning of Market Research
Market research is defined as any organized effort to gather information about target markets or customers. The term is commonly interchanged with marketing research; however, marketing research is concerned specifically about marketing processes, while market research is concerned specifically with markets. Market research provides important information to identify and analyze the market need, market size and competition.
Market research is the process of gathering information which will make you more aware of how the people you hope to sell to will react to your current or potential products or services.
Market research allows a company, or individuals, to discover who their target market is - and what consumers think about a product or service before it becomes available to the general public.
Market research involves two types of data:
- Primary Information - Research you compile yourself or hire someone to gather for you.
- Secondary Information - This type of research is already compiled and organized, such as; reports and studies by government agencies, trade associations or other businesses within your industry.