There are two types of data used in market research: primary and secondary. Primary data is data that is collected specifically for the research project at hand. Secondary data is data that has already been collected by someone else and is readily available.
The type of data used in a market research project depends on the research objectives. If the objective is to gather new information that does not already exist, then primary data must be collected. However, if the objective is to save time and money by using existing data, then secondary data can be used.
There are pros and cons to both types of data. Primary data is more expensive and time-consuming to collect, but it is more accurate and specific to the research project. Secondary data is less expensive and time-consuming to collect, but it is less accurate and specific.
The decision of whether to use primary or secondary data in a market research project depends on the specific research objectives. If accuracy and specificity are more important than
What is primary data?
Primary data is information collected through original research. A marketer typically seeks primary data specifically for their objectives. Depending on the quantity and kind of data the company is interested in, a primary data collection technique is used. While some businesses opt to conduct their own research, others might spend money on external research
What is market research?
The process of assessing the prospects of a new good or service is called market research. Companies can forecast whether a product or service will succeed by gathering data from the target demographics. Market research is used by marketers when they need additional data to make crucial decisions about branding or product lineups.
Differences between primary and secondary data
The following are some distinctions between primary and secondary data:
Sources
Searching company websites and trade associations for data on annual reports, investor presentations, market size, and industry participants is a common practice in secondary research. Because government data covers such a wide range of topics as trade activity, patents, pricing, product shipments, and economic trends, it is also helpful for secondary research.
Sending surveys or holding focus groups are frequent primary data research methods used to ascertain the purchasing patterns of your target market group.
Collection methods
Finding trustworthy and pertinent sources is frequently necessary for gathering useful secondary information, which primarily entails extensive reading. Secondary data is research that has already been conducted, so it frequently does not necessitate interacting with others.
Primary data research involves gathering data yourself. Conducting primary research typically involves gathering specific or exploratory data. More accurate and frequently including quantifiable information like numbers and figures, specific data is Exploratory research is more opinion-based, often including more open-ended interviews.
The following techniques can be used to gather primary data:
Interviewing relevant industry leaders about their successful initiatives, competitors, and business practices can help you collect primary data.
It is advantageous to assemble a small group of people who closely match your target demographic when using a focus group to collect primary data. A focus group’s purpose is to gather feedback from participants on their likes and dislikes of your product or service.
Using data collected from a sample of people, surveys can be used to draw accurate conclusions about a larger population. Typically, businesses use these questionnaires to gather information about their products. They typically send them via mail or online. Surveys conducted over the phone and in person are also effective ways to gather primary data.
Marketers can gather information about pertinent conversations in online channels by using social media monitoring. By tracking how frequently certain words or phrases are used in social media posts, a business can better understand trends and consumer behavior. Websites that are helpful for this type of research include blogs, forums, news sources, review sites, and social media platforms.
Cost
The cost of secondary data research can vary greatly depending on the level of information you seek, but it is typically less expensive than primary data research.
It can be costly to order custom research that offers thorough primary data. For your marketing requirements, this type of research provides comprehensive intelligence and answers to specific questions. Additionally, a custom research project to generate primary data typically takes two months or more to complete.
Accuracy
Due to the possibility that relevant data may be more than a few years old, secondary research may not be reliable. This implies that by the time you want to use the quantitative data from the study, it might have changed. The majority of secondary research comes from other research projects that most likely had different goals from your marketing research project.
However, primary research, which is carried out specifically for your objectives, is the most accurate method for marketing research. When you conduct a custom research project, the data is usually accurate and currently applicable.
Uses
Secondary research is useful for creating a strategy to gather primary data even though it can be unreliable and general. Understanding the data you want to pursue will help you plan how to collect it more effectively. Marketers frequently make decisions about marketing campaigns and product development using both types of data.
What is secondary data?
Information gathered from public sources, such as websites, periodicals, or other literature, is known as secondary data. When collecting secondary data, it’s crucial to confirm a source’s validity before using its data. If a marketer wants to conduct both primary and secondary research, starting with secondary research makes switching to primary research simple.
Pros and cons of primary data
Here are some positive aspects of primary data:
Here are some negative aspects of primary data:
Pros and cons of secondary data
Here are some positive aspects of secondary data:
Here are some negative aspects of secondary data:
Example of market research
Here is an illustration of how a business might effectively use market research:
A small chain of donut shops called Go-Nuts Donuts wants to start making vegan donuts. The marketing team of this company conducts market research to better understand whether this would increase clientele and revenue. The Go-Nuts marketing team first gathers secondary data, such as by looking up news articles online about other donut shops that have started selling vegan options. Additionally, they might look up data on the population of vegans in their city.
The Go-Nuts marketing team then carries out primary data research by sending questionnaires via email to the business’s current clientele to gauge interest in the new products. Additionally, a focus group is assembled to sample the new donuts and provide feedback. Go-Nuts has the information necessary to forecast the success of their new vegan menu after conducting this study.
Market Research: the Difference Between Primary and Secondary Sources
FAQ
What is the difference between primary and secondary data in market research?
The term “primary data” describes information that was gathered directly by the researcher. Secondary data means data collected by someone else earlier. Surveys, observations, experiments, questionnaire, personal interview, etc. Government publications, websites, books, journal articles, internal records etc.
What is the difference between primary and secondary data?
Primary data are the first information obtained from your research projects. Secondary data are data derived from your primary data. The difference between primary and secondary data is frequently not always obvious. You will gather and produce both types of research data while conducting your research.
Is secondary data good for market research?
Secondary data can be useful for developing a strategy for conducting primary research and for better understanding your market. Finding secondary data is fairly inexpensive. Secondary data is frequently less expensive than primary research because it doesn’t involve the time-consuming process of collecting and disseminating materials.
What is the difference between primary and secondary research examples?
Student theses, market research, and first-person accounts of trauma survivors are examples of primary research data, whereas newspapers, books, academic journals, and magazines are examples of secondary research data.
