It is an unstructured interaction with the consumers by a market researcher. In other words, it is brainstorming with the consumers. It focuses on specific marketing problem, thus eliminating the discussion of irrelevant things. A focus group is formed by inviting 8-12 potential and interested consumers. The group moderators lead the participants through an open and in-depth discussion on the topic on hand. The discussion is non-directive and non-judgmental. Many feel, however, that focus groups have limited utility for generating new product ideas as the consumer needs are latent. These latent needs can be translated into any product. Focus groups are, however, useful in testing existing products and in concept testing.

Focus groups should be made representative, or else the results cannot be generalised. The interpretation of the focus group idea demands competence.