Classifying Market Research
From Entrepedia: The Entrepreneurship Wiki
The basic market research process has four fundamental steps:
1. Deciding what to collect and why 2. Collecting data 3. Analysing data 4. Disseminating findings
In addition, market research is broken down into two classifications: primary research, and secondary research
Contents |
Primary Research
Primary research is data collected from individual research subjects. It is data that has been collected for the first time, and is sometimes the only way to find out information concerning potential demand for a particular product/service.
Primary research is gathered through three key methods:
- Questionnaires/Surveys
- Observation
- Experimentation
Secondary Research
Secondary research is data that was collected by persons or agencies for purposes other than solving the problem at hand. It is economical and comparatively fast, and is also non-reactive, unobtrusive, and can be conducted with complete confidentiality. However, it will rarely examine the market from the exact perspective that the researcher would prefer
Secondary research is gathered though a variety of resources:
- Statistics by governments
- Trade associations and journals
- Other reputable organizations
- Market research and analyst reports
Research Process
It is advisable to complete secondary research as early as possible. This will allow you to establish who the competition is, and to get some background research into potential customers. However, secondary research will not be exhaustive, so the next step is to establish where information gaps are in secondary research. When this is done, devise a primary research methodology to find the missing information.
Qualitative and Quantitative Research
In addition to secondary and primary research, market research can be qualitative and quantitative.
Qualitative Research
- Data usually collected from a small sample of customers, usually in a face-to-face meeting or focus group
- Helps to obtain basic feel for the issue before proceeding to the more analytical study
Quantitative Research
- Data collected from a large sample of customers; however, the process is usually simpler and shorter
- Used to establish the size of an opportunity across a target group
The use of these two forms of research in tandem is the best way to understand your customers' needs.
