When we meet with prospective clients who are interested in market research, it’s not uncommon for us to first have to disentangle if they are needing to conduct product research or market research. While there is overlap between the two, they each focus on different aspects of the business process.
Let’s take a closer look into each so you can better define product research vs. market research.
Let’s Define “Product Research”
Product research focuses primarily on the development, features, and performance of a product. It isn’t as broad in scope as a qualitative market research study, and is more focused on a specific product or product feature. The research outcomes will help you gain deeper insights into the product’s design, functionality, usability, and how it meets the needs of the target audience.
When we conduct product research, we focus on:
- Product design and functionality: What features should the product have? How does it work? How is the UX design of the product experienced by actual users?
- Consumer feedback on the product: Understanding how customers interact with the product and their opinions on its performance.
- Product differentiation: How does this product stand out from competitors? What makes it unique or better?
- Performance evaluation: Does the product deliver the promised outcomes? Is it reliable and durable?
There are a number of research methodologies that we employ when conducting product research, from user testing to ethnographies. These methodologies are similar to what we may use when conducting market research, but the focus and structure of our research study is different.
Now, Let’s Define “Market Research”
When people talk about ‘market research’ surveys may be the first thing that comes to mind. Market research is an umbrella term that more broadly focuses on understanding the overall market dynamics.
We educate our clients on more fully understanding the difference between qualitative and quantitative market research, since each type of study yields very different outcomes. Qualitative market research focuses on the values that drive decision-making and gets to the ‘how, what and why’ behind consumer behavior. Quantitative research looks at broad trends across a larger sample of consumers to see if there are any emerging patterns that can be detected.
Similar to product research, a qualitative market research study may include focus groups, mobile ethnographies, and/or in-depth interviews.
Market research studies help us better understand:
- Target market identification: Who are the potential customers for the product? What are their demographics, behaviors, and needs?
- Competitor analysis: Who else is offering similar products? What are their strengths and weaknesses?
- Market trends: What are the current and future trends in the market? Are there any emerging technologies or shifts in consumer behavior?
- Pricing strategies: How should the product be priced based on competitor pricing and consumer willingness to pay?
Similar, But Not the Same
There is no doubt that there is overlap between product research and market research, but they are not the same. Product research focuses on the product itself, while market research focuses on the market environment and consumer behavior.
A product research study will ensure you have a better understanding of the viability, functionality, and consumer uptake of your product, whereas a market study will help you identify the opportunities, threats, and consumer demands in the marketplace.
Our team at InterQ has conducted many successful product AND market studies for our clients. Each research study is customized to the objectives and goals of our clients so that they are empowered with information and insights to help them best understand the market and build products that will be relevant and resonate with their customers.
