Many people use the terms “market research” and “marketing research” interchangeably. However, while they are related concepts, there are some key differences between the two that are important to understand.

In this post, we’ll break down what each entails and how they can work together to provide insights to drive business growth.

Defining Market Research

Market research involves gathering data and information about a market in order to better understand customer needs, preferences, and behaviors. It looks at the broader marketplace, including factors like:

• Market size and trends
• Customer demographics
• Competitor analysis
• Industry analysis
• Product demand and sentiment

The goal of market research is to assess the viability of a market. It helps companies identify market opportunities and potential risks before launching a new product or service. Common market research approaches include surveys, interviews, focus groups, and analysis of market data. The insights gained through market research allow businesses to make informed strategic decisions about things like:

• Which customer segments to target
• What products or services to offer
• How to effectively position their brand
• Appropriate pricing models
• Where to allocate resources

In essence, market research focuses on understanding the market landscape as a whole. It takes a wide-angle view of the external marketplace.

If you’re interested in market research, check out the Zensus app. The app contains short video polls and uses AI to transform poll results into short insights.

The Purpose of Marketing Research

Whereas market research looks at the big picture market environment, marketing research zooms in to focus on a company’s specific marketing efforts. Marketing research involves gathering and analyzing data related to a company’s marketing activities to maximize their effectiveness. It looks at questions like:

• How effective are our current marketing campaigns and tactics?
• How do consumers perceive our brand?
• How can we improve our products based on customer feedback?
• What messaging resonates most with our target audience?
• Which pricing model yields the best ROI?
• Where should we allocate more marketing budget?

Some common marketing research tactics include A/B testing, customer surveys, online listening tools, and sales data analysis. Marketing teams use these insights to optimize elements like:

• Messaging and positioning
• Product development
• Website optimization
• Campaign performance
• Sales process
• Customer retention

In summary, marketing research takes an inward focus on optimizing a company’s own marketing strategies, while market research looks outward at the broader market and competitive landscape.

Using Market and Marketing Research Together

While market research and marketing research serve different primary purposes, they can work very well together. Market research provides the lay of the land—helping define market opportunities and risks, customer needs, competitive forces, and industry trends. Marketing research then provides the focused insights to turn this market intelligence into executed marketing strategies that resonate.

Here are a few examples of how market and marketing research can intersect:

• Market research identifies an underserved customer segment with certain needs. Marketing research then analyzes how best to tailor messaging and products to this segment.
• Market research suggests room for a new entrant in an industry. Marketing research guides product development and go-to-market strategies.
• Market research shows price sensitivity around certain product features. Marketing research analyzes optimal packaging and pricing models.
• Market research identifies emerging trends and innovations. Marketing research shapes strategies to leverage these trends across branding, positioning, and campaigns.

The Yin and Yang of Insights

In the end, market research and marketing research are complementary disciplines focused on a similar goal—providing insights to make better strategic decisions. Market research takes a high-level external view of the marketplace, while marketing research analyzes internal tactics and results.

One provides the forest view, the other examines the trees. One sets the strategy, the other optimizes the execution. Leveraging both types of research allows for alignment between market realities and marketing tactics—helping ensure more resonant messaging, better customer targeting, and ultimately, faster business growth driven by true consumer insights.