Market Research (MRX)
What is it? Market research is the process of gathering information about people/target audience (consumers, customers, users, prospects, etc.) — a market — and then analyzing it to understand what that group of people need, what they like, their beliefs, behavior, opinions, attitudes, experiences, what their frustrations may be, and why. The results are used to help businesses make informed decisions about strategy, market opportunities, innovation, operations, customer base, and marketing (see below for full definition. Whether “Market Research” operates as an umbrella term over UX, DR, HCR, CX, etc., is often debated or whether one of these other terms is the “umbrella” term. Market research can be misinterpreted as being about the “product category/market” e.g. the Shampoo market, the car market - where as the majority believe it is about the “customers and potential customers” of those markets.
Marketing researchers may employ qualitative methods such as ethnography, in-depth interviews / dyads / triads / mini-groups or focus groups, diary studies, shop-alongs, drive-alongs, mobile ethnos, online bulletin boards, chat-based research, VOC, NPS. etc., or quantitative research methods such as regression analysis, pricing research, market modeling/sizing, brand/advertising tracking, and surveys such as concept tests.
When is it best used? Businesses use market research to understand the people in their market and determine the feasibility of new business ideas. If the research indicates a demand for the product or service, then the proposed business idea may be viable. As such, it is a core piece of any business plan. Businesses may also use market research to expand into new markets.
What does it entail? There is primary and secondary market research.
Primary market research refers to research that you gather yourself. It can include surveys, focus groups, observation, and/or in-depth interviews. This research can be quantitative and/or qualitative.
Secondary market research consists of research data that has been gathered by others such as the government, industry analysts, universities, other companies, etc.
Use in a sentence: The market research shows that people want high-quality food, not just low prices.
Related Terms: marketing research
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