The Difference Between Primary and Secondary Sources in Market Research

Market research is important for many reasons. It can provide you with a clear picture of your business landscape. It shows how your company ranks among competitors and how potential customers perceive your company. It can give you a clear idea of what you should do next to attract new customers. And, because the data is based on primary sources, it is generally more reliable than secondary sources. But, market research is not the same as research that involves focus groups or surveys of consumers.

Primary market research is based on interviews

There are many advantages of using interviews in primary market research. One of the most obvious is cost efficiency. In developed countries, most people own a cell phone and a business can expand its research efforts across countries. Another benefit is ease of use. A telephone interview can be as simple as asking someone to give you feedback on a product or service. In addition, telephone interviews follow a set structure. For example, a business can ask about customer satisfaction by calling a customer's home or workplace.

Secondary market research is based on secondary sources

In the context of marketing research, secondary sources refer to research done on the subject from previous studies. Secondary market research is a cost-effective alternative for organizations without a lot of funds to spend on primary research. Secondary sources, which are often referred to as desk research, collate data and provide an analysis. This method is useful in identifying issues, competitors, target audiences, and personal business conditions. Although secondary sources can be difficult to interpret and rely on, they can be valuable.

Focus groups are dangerous

The first mistake in doing focus groups is thinking that your responses will be representative of the entire population, which would lead to misunderstanding what is needed for startup success. Focus groups typically consist of a small number of participants who do not represent the entire population. This means that you have to be very careful when generalizing from the data you gather from focus groups. To make sure that your results are representative, read the focus groups' summaries and take notes. Look for trends and patterns and note whether the answers are consistent across groups.

Online market research is becoming more popular

More companies are turning to online market research to measure consumer behavior and gauge the effectiveness of their campaigns. Traditional market research methods tended to generate relatively small datasets that were either low quality or manually created. This is changing as researchers turn to passive analysis of consumer behavior and collect massive datasets that are already generated by the behavior of consumers. For example, companies like Netflix gather data on the viewing habits of their users and adapt to these trends as they occur. New services are emerging that aim to make this process easier.

Purposes of market research

There are many different uses of market research. The primary goal of market research is to collect data that will help businesses determine how best to reach their target audiences. It can be used to segment markets, differentiate products, and tailor advertising efforts. Market research can also be used to determine the viability of a new product or service, and uncover consumer priorities. To perform this research, businesses must complete various tasks, including obtaining data about a market sector, analyzing and interpreting that data, and determining the best methods for reaching that market.