Market research is an effort made by an organization to collect information regarding target markets or market segmentation. It refers specifically to market conditions and is a key component of the initial business strategizing to assess need.There are two types of market research: primary research and secondary research.
Primary research is done exclusively by the organization to gain insight into a defined area of interest or to answer a specific question that the organization wants to address. Examples of primary research are telemarketing, questionnaires and surveys.
Secondary research consists of the organization analyzing existing research in a manner that will further their knowledge of the market in which they participate. In business, secondary research is typically done by analyzing government data.
The process of market research ultimately aids the organization in the business decision-making process.