Market research is any organized effort to gather information about markets or customers. It is a very important component of business strategy.

The term is commonly interchanged with marketing research; however, expert practitioners may wish to draw a distinction, in that marketing research is concerned specifically about marketing processes,

while market research is concerned specifically with markets. Market research,as defined by the ICC/ESOMAR International Code on Market and Social Research, includes social and opinion research,

it is the systematic gathering and interpretation of information about individuals or organizations using statistical and analytical methods and techniques of the applied social sciences to gain insight or support decision making.

Market research is the collection and analysis of information about consumers, competitors and the effectiveness of marketing programs.

Small business owners use market research to determine the feasibility of a new business, test interest in new products or services, improve aspects of their businesses, such as customer service or distribution channels, and develop competitive strategies.

In other words, market research allows businesses to make decisions that make them more responsive to customers' needs and increase profits.

While market research is crucial for business start up, it's also essential for established businesses. It's accurate information about customers and competitors that allows the development of a successful marketing plan.

While it's common for businesses to hire market research companies to conduct market research for them, it is possible for small business owners to do their own. For an explanation of the basics of market research and tips on designing your own market research surveys and questionnaires,

Market research consists of testing the market to determine the acceptance of a particular product or service, especially amongst different demographics.

It is used to establish which portion of the population will or does purchase a product, based on age, gender, location, income level and many other variables.

Market research allows companies to learn more about past, current and potential customers, including their specific likes and dislikes.

Based on market research data, businesses can develop a "target audience." A target audience is a specific group of customers that has a distinct need or desire for a product or service.

Market research is used to determine how often the target audience will buy a particular item, how much they are willing to pay for it, and their overall satisfaction with it.

By analyzing market research information, manufacturers and service providers learn where to focus their resources most effectively.

Researching your market prior to entering is a sound decision for any business owner. Unfortunately, it’s often overlooked and ignored. The results can be loss of revenue and a slow start.

What are the benefits of market research?

1) Will help you better communicate.:Learn about your potential clients — who they are and what they want the most. Nothing improves communication skills better than a little person to person contact.

2) Will help identify opportunities.:Check the competition. Are they missing something you can capitalize on? What can you do better than they can? Are you clients in need of something nobody else is offering?

3) Will minimize risk.:Just like any situation, if you come prepared you will be less likely to loose and more likely to win.

4) Will create benchmarks to help you measure progress.How well are you doing? By setting the standard high from the start, you will be in a better position for sustained growth.