Marrakech's medina is made up of endless souks. Some of my favorite discoveries have included straw hats, bags and baskets, bedding, and obviously rugs. I love the medina for insanely cheap home goods. After returning from Morocco it's been hard for me to buy anything for my house in the states as the price now seems like a rip off. Don't be afraid to wander around and compare prices and quality. But be prepared to bargain and don't feel bad if you walk away. You will come home with some amazing things and some funny stories.
I went to several rug shops in Marrakech and Dar Mejbar was my favorite. The owner was fun to bargain with and he had a great selection of rugs including both berber and persian styles. Its easy to get carried away with rug shopping so make sure you consider these tips before you go.