Market research is the process of gathering and analyzing data to understand customers, competitors, and the industry in order to make informed decisions. It involves understanding customer needs, wants, and behavior, as well as identifying market opportunities. Market research helps businesses gain insight into their target audience and improve their product offerings, pricing strategy, marketing campaigns, and overall business strategy.
Market research can be compared to market intelligence (MI). MI is a broader concept that combines primary research with secondary sources such as news articles, industry reports and surveys. The focus of MI is more strategic, providing contextual information that allows companies to develop a deeper understanding of the markets in which they operate. Market intelligence looks at all aspects of the competitive landscape including competitors’ strategies, products, pricing models and customer bases. It provides in-depth insights into changing trends in customers’ preferences and behaviors that may have an impact on their business operations. While both market research and market intelligence are effective tools for understanding markets and making informed decisions, market research focuses on obtaining information directly from customers while market intelligence gathers data from a variety of sources.
