In short, market research is the information you gather about consumers’ needs and preferences. But there’s much more to it than that. With that information, you’re able to create products that provide solutions, market to consumers effectively, and increase your chances for success.
When you conduct market research, you’ll gain an understanding of the cultural, societal, socioeconomic, geographic, and personal makeup of your target customers. You’ll understand whether there’s a demand for your product, how big that demand is, and who is generating the demand. It’ll also help you understand the competitive landscape.
There are two types of market research: primary and secondary. Let’s take a closer look at both.
Primary market research is when you study the market directly. This is when you conduct the research yourself (more on how to do that later). Examples of primary research include focus groups, customer surveys, and your own sales data.
Secondary market research is when you study the market through someone else’s research. You aren’t doing the research yourself — you’re leaning on data someone else has collected to inform your decisions about your products and customers.
Some examples of this include others’ reports, industry trends, and case studies.