Market Research

Market Research

Market research is the process of determining the viability of a new service or product through research conducted directly with potential customers. Market research allows a company to discover the target market and get opinions and other feedback from consumers about their interest in the product or service.

This type of research can be conducted in-house, by the company itself, or by a third-party company that specializes in market research. It can be done through surveys, product testing, and focus groups. Test subjects are usually compensated with product samples or paid a small stipend for their time. Market research is a critical component in the research and development (R&D) of a new product or service.

KEY TAKEAWAYS

• Companies use market research to test the viability of a new product or service by communicating directly with a potential customer.
• With market research, companies can figure out their target market and get opinions and feedback from consumers in real-time.
• This type of research can be conducted in-house, by the company itself, or by an outside company that specializes in market research.
• The research includes surveys, product testing, and focus groups.
• Market research is a combination of primary information—information gathered directly—or secondary information, which is information an outside entity has already gathered.