Define and discuss why market research is collected or conducted.
Market research is systematic research that is conducted by a business in an effort to understand more about people who might buy the firm’s goods or services. Market research is conducted, and its results collected, so as to allow the firm to make more money more efficiently.
All firms must, of course, sell their products. They would like to sell as much of their product as possible with as little wasted effort as possible. A firm does not want to waste effort or resources trying to market its products in a place or to a group that is not likely to buy. This is where market research comes in.
Market research helps firms identify who is likely to buy its products. It helps firms identify what sorts of things its customers want. Once a firm understands these things, it can market its products more efficiently. It can target only those segments of its market that are likely to buy. It can tailor its advertising to appeal to those market segments. By doing these things, the firm can use its resources most efficiently and can market its products in ways that are most likely to bring in the largest number of customers.