What is the purpose of market research?

The purpose of market research is to gather, analyze, and interpret information about a market. This process involves collecting data on various aspects such as consumer preferences, market trends, competition, and demographics. By understanding these elements, businesses can make informed decisions regarding product development, marketing strategies, and sales techniques. Market research provides critical insights that can help businesses identify opportunities and mitigate risks, ultimately informing their overall strategy to meet customer needs effectively and efficiently.

In contrast, the other options like investing in stocks, establishing a brand image, or creating advertisements are specific actions or outcomes that may benefit from insights drawn from thorough market research, but they do not encompass the fundamental purpose of market research itself. Instead, they represent applications or results that can arise from the information gained through the research process.