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Understanding Market Research

Learn how to research markets, size opportunities, and make data-driven decisions

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What is Market Research?

Market research is the process of gathering information about markets, competitors, trends, and opportunities to make informed business decisions.

While user research tells you about individual users, market research tells you about the market as a whole: size, growth, competition, and where opportunities exist.

Market Research vs User Research

Market Research vs User Research

Focus
The Market
Key Questions
  • •How big is this market?
  • •Is it growing or shrinking?
  • •Who are the competitors?
  • •What trends are happening?
  • •What are customers spending money on?
Methods
Industry reportsMarket surveysCompetitor analysisFinancial dataTrend analysis
Output
Market size, trends, competitive landscape, opportunities
When to Use
Before building, fundraising, strategic planning
Example
The food delivery market is $150B, growing 12% annually, dominated by 3 players

Why Market Research Matters

Validate Opportunity

Confirm there is a real market for your product before investing time and money building it.

Understand Competition

Know who you are competing against, what they do well, and where gaps exist.

Identify Trends

Spot market trends early. Build products for where the market is going, not where it is today.

Make Better Decisions

Base strategy, pricing, and positioning on market data, not guesses or assumptions.

When to Do Market Research

When to Do Market Research

Key Questions
  • •Is there a market for this?
  • •How big is the opportunity?
  • •Who are the competitors?
  • •What are market trends?
Research to Conduct
  • ✓Market size analysis (TAM, SAM, SOM)
  • ✓Competitor landscape mapping
  • ✓Industry trend reports
  • ✓Customer spending patterns
Expected Outcome

Validated market opportunity, competitive positioning strategy

Two Types of Market Research

Primary Research

Research you conduct yourself by talking to customers, surveying the market, or testing ideas.

Customer surveysFocus groupsInterviewsField tests

Secondary Research

Research using existing data from industry reports, competitor websites, government data, and published studies.

Industry reportsCompetitor analysisGovernment dataFinancial reports
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Market Research Is Not a One-Time Activity

Markets change. Competitors launch. Trends shift. Great product teams continuously monitor their market, not just at the start. Set up systems to stay informed about market changes, competitor moves, and emerging opportunities.

Key Takeaways

  • •Market research focuses on markets, trends, and competition; user research focuses on individual users and their needs.
  • •Use market research to validate opportunities, understand competition, identify trends, and make strategic decisions.
  • •Primary research: data you collect yourself (surveys, interviews). Secondary research: existing data (reports, competitor sites).
  • •Market research is continuous, not a one-time activity. Stay informed about market changes and trends.