Difference between Market Research and Customer Research

Explore the difference between Market Research and Customer Research

Most businesses use market and customer research interchangeably but differ in many aspects. However, the concept is the same- Market and customer research are two different approaches that help businesses improve their decisions.

“Market research focuses on the bigger picture while customer research focuses on the changing needs, behaviors, and preferences of potential customers.”

What is Market Research?

Market research means to gather and analyze information about the relevant market.

For example, if you are building an eCommerce website, you will research its relevant market and competitors to solve potential pain points of customers.

Market research typically includes-

• Understanding target audience
• Market size, trends, and competition
• Pricing and features
• Technological aspect driving the market
• Customer research for better engagement

They ask questions like-

• Who will buy our product?
• What price is fair?
• Who are our competitors?
• What are people buying now?

Market research can be done through

• Primary methods (surveys, interviews, focus groups)
• Secondary methods (analyzing existing reports, data, and trends from sources like industry reports or government statistics).

The insights help businesses launch new products, improve existing ones, enter new markets, or optimize marketing strategies.

Also read- Qualitative vs Quantitative Market Research — Which is Better for Data Analysis

What is Customer Market Research?

As you can see, customer research comes as a part of the entire market research. Without understanding your customers, your research is incomplete.

Consumer insights research means to understand your potential customers. It helps businesses understand their needs, preferences, and behaviors.

Through customer research, businesses ask questions like:

• What do customers want?
• Why do they buy certain products?
• How can we make them happier?

They collect information through surveys, interviews, or by looking at customer feedback. This helps companies improve products, services, and customer experiences.

Here are some simple consumer research techniques:

• Consumer market survey: Driving online surveys across different channels to learn about potential customers.
• Interviews: Connect one-on-one to understand customers’s preferences and pain points. It could be telephone interviews or personal meetings
• Focus Groups: Small groups of individuals who share their experiences and feedback about a product.
• Observations: Watching how customers shop or use products to see their behavior.
• Customer Feedback: Reading reviews or comments to know what customers like or dislike.
• Social Media Listening: analyzing customers on social media to understand trends and their preferences.
• A/B Testing: providing customers with two versions of the product to understand what works better.

Using these consumer marketing research methods helps businesses understand their customers better to improvise their products and strategies.

Also read- Top 10 Market Research Software and Tools for Survey Creation

Popular Consumer Insights Platforms

• Meltwater Consumer Insights Tool
• Linkfluence — Radarly Consumer Intelligence Platform
• Euromonitor — Global Analysts Specializing in Consumer Products
• GlobalData — Consumer Insights Throughout the Value Chain
• GreenBook — Free Consumer Insights Tool
• Mintel — Consumer Insights Predictions
• Savanta — Consumer Insights for B2C and B2B
• Google Trends — Free, Reliable Consumer Insights Data

Want to build your own Customer insight platform? Connect with OnGraph’s Market Research experts.

Difference- Market and Consumer Research

Let’s take a look at the different aspects where these two differ.

Some other terms also need clarification. We will discuss them in detail.

Difference Between Consumer and Customer

I assume many people don’t understand the difference, or if there is a difference at all.

But for market researchers, the difference is crucial. It helps them create a marketing strategy based on who is using and who is buying the product. Recently, I was buying a gift from the Myntra app. After the purchase, there is a survey option where they ask if the product is for you or someone else. I think they are trying to analyze the segmentation.

A consumer actually uses a product or service and a customer purchases a product or service. Sometimes, the consumer and customer are the same person, but they can also be different.

Market Research vs Marketing Research

For any business to excel, business must conduct both market research and marketing research. But, what’s the difference?

Market research or industrial market research helps businesses study the entire market. From understanding market trends, competitors, and target audiences, to the size of the market, it helps businesses unlock new opportunities.

First, understand what marketing research refers to here. Once the product is ready, the business runs marketing campaigns. To understand their efficiency, businesses must conduct marketing research and testing.

Marketing research helps businesses understand the performance of their marketing efforts. They learn about advertising, pricing, customer feedback, and product performance. It helps companies improve their marketing strategies and reach their customers better.

When you must do marketing research-

• Launching a new product, feature, or functionality
• Entering a new market segment
• Assessing market strategies
• Identifying competitors
• Analyzing market trends

Market Intelligence vs Market Research

The term intelligence refers to using technology for better and enhanced market research. Today, getting real-time information and updates about your market helps you stay ahead. Market intelligence is the way.

With technologies like AI, ML, and Natural language processing, businesses are creating advanced AI-led market research solutions for faster and more accurate research.

Market intelligence is continuous, giving a broad, current view, while market research is deeper and more project-based.

Business Benefits of Market Intelligence

• Identify customer preferences and needs.
• It shows what competitors are doing.
• Spot new opportunities.
• Informed decisions quickly.
• It improves product development by understanding market demands.
• Planning effective marketing strategies.
• Reduces risks by understanding market conditions.

Market Research vs Competitive Analysis

Just like consumer research, competitive analysis is also a significant part of market research. The competitive analysis helps you understand your potential competitors and how to gain an edge over the competition.

Reasons to conduct competitor analysis-

• Understand what competitors do well and where they struggle.
• Find gaps in the market you can fill.
• Set better prices by knowing competitors’ prices.
• Improve your marketing by seeing what works for others.
• Anticipate competitors’ actions and plans.
• Spot industry trends and best practices.
• Discover ways to make your product different.
• Make better decisions for your business.

Understanding these differences will help businesses expand and improve their research. Using a combination of market and consumer research, along with market intelligence will give you a competitive edge, unlock trends, and build strong customer relationships.

Unlocking Success: The Winning Combo of Market Research and Consumer Research

Combining the power of market and consumer research provides businesses with a comprehensive understanding of both the overall market landscape and individual customer preferences.

Market research shows trends in the industry, how competitors act, and where opportunities are. Consumer research looks at what customers need, how they behave, and what they think. Together, this information helps businesses create better marketing plans and products that people want. It helps them make smart decisions that lead to growth and happier customers.

By using both types of research, businesses can meet market needs and build strong relationships with their customers. Today, using AI-led market research solutions helps you transform your research journey.

Explore how AI and ML can help you get a competitive advantage in this dynamic landscape. At OnGraph, we have expertise in developing next-gen market research solutions for streamlined research.