Companies use market research to test the viability of a new product or service by communicating directly with a potential buyer.
Through market research, companies can identify their target market and receive opinions and feedback from consumers in real time.
This type of research can be conducted within the company, by the company itself, or by a third party company that specializes in market research.
Research includes surveys, product testing and focus groups.
Market research is a combination of primary information (information collected directly) and secondary information, which is information already collected by an external organization.