Which of the following is a key part of market research?

Identifying consumer needs is indeed a key part of market research because it helps companies understand what their target audience desires and requires from products. This understanding drives product development and marketing strategies. By accurately assessing consumer preferences, businesses can tailor their offerings, ensuring higher satisfaction and increased likelihood of success in the market.

Market research involves gathering and analyzing data about consumer behavior, preferences, and trends. This process provides valuable insights that can lead to better product design, pricing, and positioning within the market. When companies focus on identifying consumer needs, they can make informed decisions that align with consumer expectations, ultimately leading to effective marketing strategies and product success.

While estimating product cost, setting a sales target, and creating promotional materials are important aspects of business planning and marketing, they are not the foundational components of market research. These activities often come later in the process, after understanding the consumer's needs and the market landscape.