Focus groups, surveys, field tests, interviews, and observation are examples of primary market research. Primary market research lets you investigate an issue of specific interest to your business, get feedback about your website, assess demand for a proposed service, gauge response to various packaging options, find out how much consumers will pay for a new product, and more.
In addition, primary research is usually based on statistical methodologies that involve sampling as little as 1 percent of a target market. This tiny sample can give an accurate representation of a particular market. The downside of professionally conducted primary market research is that it can be expensive — several thousand dollars or more. Fortunately, a growing number of online tools allow you to conduct primary research such as surveys yourself at very little cost.
Savvy entrepreneurs do secondary research first and then conduct primary research. For example, the owner of a cupcake shop would want to know all about a neighborhood before opening a new store there. Using information gleaned from secondary sources, the owner can uncover all kinds of demographic information, including detailed income data and spending patterns.
Secondary research lays the groundwork, while primary research fills in the gaps. By using both types of market research, small business owners get a well-rounded view of their markets. Sign up for practical, real-world solutions from successful business owners delivered to your inbox each Saturday morning. For example, if a company wants to solve the problem related to distribution activities, whatever data collected in light of this problem can be referred as primary data. Primary data are collected from relevant respondents.
They are not readily available, their collection and analysis need rigorous efforts. Success of marketing research depends upon quality and quantity of primary data. In fact, no research project can be completed without primary data. Specific methods like survey methods, observation methods, experimental method, etc. Primary data are the basic input in solving problem. They are expensive, time consuming, and they need more efforts. Sources of primary data depend upon type of problem.
They are collected by using specific methods and tools. Secondary data, on the other hand, are published data. They are readily available. They can be used directly without processing or analysis. They are collected rather than generated.
Secondary data are those details which have been collected for the purpose other than specific research problem. They are also known as the recorded data. They are published data. They have been collected by other people for their contemporary problems. Sometimes, they are not useful.
They are supplementary to primary data. They support primary data. Extent to which secondary data are used for marketing research depends upon suitability, accuracy, and time. Secondary data consist of the information that already exists somewhere, having been collected for other purposes. Hardly problem can be solved only by secondary data. They are used for exploring, defining, and understanding problems, which can be solved by primary data. For collecting secondary data, there is no need for employing qualified, experience, and capable research officer.
Similarly, special methods and tools are not used.
Defining Primary Data in Market Research. Primary data is information that you collect specifically for the purpose of your research project. An advantage of primary data is that it is.
Primary research is designed to meet your unique and specific needs. This fundamental research is conducted by you (if you're on a tight budget), or by a research firm that you hire for the project—usually a firm that comes recommended by a colleague.
Primary market research is tailored to a company’s particular needs and is conducted either by you or by a company that you pay to conduct the research for you. Focus groups, surveys, field tests, interviews, and observation are examples of primary market research. Primary marketing research is proprietary, original research that you own, while secondary research is conducted by a third party and available to anyone.
Doing only primary market research – Another common mistake that must be avoided when doing market research is doing only primary market research. Businesses often make the mistake of spending so much time on primary research that they forget that using secondary sources for data could also prove useful and a lot more time-saving. Read on for a quick breakdown of secondary and primary data and tips for finding valuable insights for your market research needs. At the highest level, market research data can be categorized into secondary and primary types.