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What is market research?

What is market research?

Market research is the process of evaluating a possible opportunity for entering into a market with a new product or company, or for evaluating the effectiveness of a product or company in a market that they are already invested in. Market research can also be important for decisions regarding mergers and acquisitions. It may involve surveys and market study groups.

Sometimes a company will conduct its own market research, but often third-party companies are hired for the task. These companies may specialize in sampling and surveying methods for consumer groups, and/or statistical analysis of a business model or product’s chance of success in a given market. Companies may look to such analysts if they are considering a merger or acquisition, or of launching a new product.

Companies may also be compelled to engage in market research if their performance has been slipping relative to their standards or that of a peer group. Individuals who participate in studies to gather this information are usually compensated in some way for their time.

Market research is a term that can sometimes be used synonymously with marketing research. Companies often have to do market research to identify or find out more about their target market.

What are Market Cycles?
What is Market Discipline?

Keywords: marketing, Mergers and Acquisitions (M&A), statistical analysis, target market, market research,