Methods and Types of Secondary Market Research
The process of assimilation of information about a target audience is called as market research. The goal behind undertaking market research is to enable an organization to have a clear idea about consumers for satisfying all their needs. Another primary reason for undertaking market research services by a company is to equip itself to be able to compete with other organization in the industry through a proper analysis of the needs of the market, the market size, and the prevailing competition.
For the purpose of gathering in an organized way and for better interpretation of market research information, market research uses various technical and analytical research methods along with opinion and social based research techniques, whose importance is increasing in today’s competitive business environment. The days of relying on gut instincts to run a business are over.
Methods of Market Research Techniques
The broad classification of market research services involves primary or secondary.
Primary market research involves conduct of research by an organization or company to collect data for meetings its current goal. It involves:
- Direct Observations
- Focus groups organized for carrying on research.
In the secondary method of market research, data assimilation takes place from varied sources. Examples of secondary market research include the following:
- Information that is available on the internet.
- The prevailing or existing results of market research.
- Data available on stock lists and from consumer databases.
Information obtained from varied agencies such as the libraries, government, industries and other local bodies. Though secondary market research method involves plenty of challenges, it assists and organization in obtaining the most information about the market. Secondary market research enables an organization to gain an initial understanding about the market. An organization, when interpreting secondary market research should exercise extremely cautious approach as the chances of the information collected for another purpose or market segment cannot be ruled out. Being a comparatively faster market research technique as compared to primary market research method, the chances of others having already analyzed the secondary market research information is high.
With the markets being constantly evolving, cautious approach need be exercised to see that the secondary market research information does not become obsolete as this can end up affecting your results by making them outdated.
Types of Secondary Market Research Methods
The type of market research information gathered defines it as either quantitative or qualitative.
The research conducted to gather numerical data is defined as quantitative method of market research and it includes the following:
- Surveys conducted to assert customer refund frequency.
- Figures about sales
- Sales number related to industry products
- Telephonic or online questionnaires
- Trends pertaining to finance.
The quantitative method of market research services involves plenty of statistics is helpful in identification of the following:
- For identification of the market size
- The worth of the market size for the business
- Identification of areas of sales for the growth of the business.
The qualitative method of market research primarily deals with the gathering of information about the attitudes, feelings, and views of the consumers. It involves the following:
- Focus groups consisting of consumers and potential customers to understand the views they have about the company’s products and services.
- The informal and formal chats engaged with consumers to understand their satisfaction level about the company and its products.
- Information about competitors such as reviews and the visits etc to understand the practices engaged by them with respect to their products and practices of customer services.
Qualitative market research method though is very helpful in understanding consumer needs, habits, practices including being very helpful in increasing sales and providing better consumer service, it requires an altogether different approach and may even take longer time for data interpretation due to the complex nature of information collected.