What is Market Research? A Definition and Overview.

When you’re starting a business or just exploring ideas, certain information is vital to guide the development of your business model and to later explain it to investors. You’ll want to know how much of a demand there is for your idea, what the competition looks like and who your best customers will be.

The American Heritage Dictionary succinctly defines market research as: “The gathering and evaluation of data regarding consumers’ preferences for products and services.”

A more extended explanation of market research as it relates to small businesses can be found on Entrepreneur.com.

An article on Qualtrics Blog gives nine steps to conduct market research, making it seem simple and approachable, even for us non-analysts.

By approaching research like a marketing analyst, you can find your own answers to any questions you’re having. The process begins with a main question to investigate. For example, you can conduct market research to address problems within an existing business like, “Why are sales down?”

Use either of these methods:

• Objective, “scientific method” approach with more quantitative data or
• Subjective approach, which utilizes more qualitative research

Then you’ll have to decide between:

• Experimental methodology or
• Non-experimental methodology

Two basic methods of data collection:

• Interviews

• Observation

After going through the meticulous process of market research, you’ll be rewarded with an abundance of helpful data to help inform your actions in a more intelligent way. To read the original article in its entirety, please visit Qualtrics.