Define 'market research.'

Market research is defined as the process of collecting information about a market. This encompasses gathering data on consumer preferences, market trends, and competitive dynamics to understand the marketplace better. It plays a crucial role in shaping marketing strategies, as it helps businesses identify potential customers' needs and behaviors, evaluate the competition, and assess the effectiveness of their products or services.

The focus of market research is primarily on external factors that impact market performance rather than internal assessments. This demarcation makes it distinct from other business analyses, such as the study of corporate financials, which is concerned with a company’s profitability and financial health, or analysis of internal business performance, which evaluates the organization’s operational efficiency. Similarly, methods for assessing employee productivity concentrate more on workforce metrics and do not delve into market dynamics. By contrast, the essence of market research lies entirely in its aim to explore and understand the market landscape.