Importance of primary market research
Posted on: August 26, 2022
How to conduct a primary market research?
Primary research is one of the key elements of market research. In short, it involves the collection of information directly from the potential customers which can help identify or analyse the areas for improvement. Based on the needs and requirements of the company, the methods used in primary research are altered accordingly. Now, there are two types of primary market research i.e.; quantitative and qualitative. The former comprises of surveys, questionnaires, call interviews, etc. whereas the latter involves focus groups, in-depth interviews, and observations. What makes primary research an important element of organizational success is that it helps to get a personal view or opinion of the target audience which can result in better decision-making. The only downside is that compared to secondary research, it is a bit more expensive as you are in direct interaction with the potential users. Since secondary research comes with pre-existing data, there are reduced costs as such. However, experts state that the expense of primary research is worth it because of the access to raw information. Ownership and customization are the two other benefits that come along with it.
Now, let's give you an insight into quantitative and qualitative market research. Quantitative research by definition refers to a technique wherein customers are asked questions in an organized manner. This can look like in the form of questionnaires, surveys, polls, etc. If you look at the expenditure that comes with it, you can see that most of the professional research organizations charge pretty high. This is mainly because primary market research requires more of time, effort and energy. It also provides valuable insight into developments taking place within the industry. It helps find out the key areas of the invention that require attention. This allows better focus on the individual market.
Primary market research methods:
As mentioned earlier, there are various ways to conduct primary market research that will give you a detailed idea on the viability of a product or service. To begin with, let's talk about qualitative primary market research methods;
- Surveys:Online surveys help to generate feedback on a large scale which makes it a cost-effective method. It is important to ensure that the survey is in a balanced length, i.e.; it is not too long or too short, but just appropriate to collect the necessary data.
- Focus groups: It helps to collect data from a small group of people. The members of this group are usually experts on the topic that they are being interviewed on. As the discussion takes place, it becomes easier to identify the areas that require attention for improvement. Companies usually make use of focus groups to generate data on niche market trends as well as gain better insight into the target audience.
- Observations: Just as the name suggests, this technique involves observing or paying keen attention to the potential customers and the process in which they choose a product or service. By monitoring their actions, you have a detailed insight into what they are looking for.
- In-depth interviews: To start with, interviews with the target audience provide information regarding their opinion on the invention. In fact, compared to questionnaires, interviews are much more flexible as you can easily form questions based on the answers received. Nevertheless, the only downside is that it requires considerably more time.
Next, let's take a look at the quantitative primary market research methods. As you can see, this technique takes an organized approach towards data collection. Here is what you should know;
- Questionnaires: You already know the function of questionnaires and there is a solid reason why it is used in primary market research. It helps to study the customer's minds more effectively and generates a detailed analysis which can be beneficial for the company. It allows easy interaction with the target audience and is found to be better than surveys mainly because there is no specified limit for questionnaires. Needless to say, keeping it balanced gets the job done much better.
- Surveys: Due to its ability to widely cover the target audience, surveys are considered to be highly cost-effective. Therefore, it helps to build a better strategy for effective marketing and advertising. It helps to study your audience in detail and accordingly take the right initiative in promoting a product or service.
- Call interviews: One-on-one interviews allow you to collect data from each individual for a better understanding. This can help take the necessary measures to generate profits for the product or service.
Why is primary market research important?
The significance of primary research continues to grow in popularity mainly because of its ability to collect raw data in a cost-effective manner. This also explains why primary market research outweighs secondary market research although the expenses are higher. To elaborate, here are the key points that showcase the importance of primary market research;
- Better approach: Primary market research provides a better focus on the target audience as you are able to choose the direction in which the research should be conducted. You can even decide on the target audience and develop precise strategies to achieve the desired goal.
- Ownership of information: Since primary market research involves the direct collection of information, you automatically attain its complete ownership. Not only does this help in better planning of the future but also enables you to understand/analyse the past decisions of the company.
- Competitive appearance: One of the highlights of primary market research is that it gives you the A-Z of trade secrets that no one else has access to. Thus, there is an increased possibility for your company to outperform the rest of the brands.
- Latest data: Primary market research helps to generate raw data which also means that you will be able to collect new information that can support crafting the research objectives.
On the whole, it can be said that primary market research comes with a series of benefits compared to the secondary market research which makes it a vital tool for running a successful business. Although the expenses are comparatively high, each method in the primary market research is worth it due to the end results.
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