Market Research Types
In the previous blog post, we have studied a prelude to market research. In this blog post, let us look at the types of market research, its advantages, and limitations. Before launching a product or a service, or before entering into a new market, any businessman should conduct a market research for his business. A market research is a very important and critical activity in a business launch. There are two types of market research – primary market research and secondary market research.
Secondary Market Research
A secondary market research is carried out by extracting from different sources, say a government portal or from a nodal agency or from a previously conducted survey, and analyzing the data for our business requirement. This market research is carried out from the office room and not in the field.
Primary Market Research
A primary market research is carried out by listing down a specific set of queries in the form of a questionnaire, asking the target audience those specific set of queries, gathering the fresh data, and then analyzing the data. More often than not, this market research is carried out in the field. But if your target audience is on an email and/ or social media, you have a luxury of conducting your primary market research through social media campaigns, email marketing techniques. One can also conduct a phone survey if you have a list of telephone numbers of your target audience.
So, which one of market research types should you conduct first?!
It is best advised to carry out a secondary market research before a primary market research. The reason is simple – a secondary market research gives you first-hand viability of your business. Say, if you had all data to do a secondary market research and if that secondary market research doesn’t give you the business viability, then you saved time, money, and effort by avoiding a primary market research.
A marketer should ask 3 specific questions during a secondary market research viz:
- Relevancy of target audience – Whether the data reflects true insights of my target audience?
- Relevancy of data – Whether the data is still relevant to this date?
- Sufficiency of data – Does my data provides enough insights of my target audience to launch a business?
And, which market research type is better?
Not always you’ll have enough & relevant data to get an insightful secondary market research study. Either sample data is too small or data may not be relevant or both. Also, a secondary market research involves correlating the data extracted from different sources. There may be some gaps in the data or in the data correlation. In such cases, you had to deploy a primary market research tailoring a specific set of questions aimed at your target audience. However, in a secondary market research, other experts would’ve interpreted the data and would’ve given their opinions which might be useful for your business. But, in a primary market research, you must dissect the data and make your opinion. So, the answer to which one is better – both has advantages and limitations. One must judiciously deploy both market research types for a successful business launch.