Market research has become the need of the hour. It is a systematic process of collecting, arranging, analyzing and presenting the required data. These are research reports that focus on the target market of a company. Also known as field research, primary research is the process of newly creating information at the source. Primary research is generally performed by the businesses or outsourced organizations.
What is primary research?
Primary research is a process of creating marketing research reports by collecting highly relevant data from the source of information. These are the basic most reports which are not frequently carried out by the organizations. Have a look at the advantages of primary research reports:
- The business that wants to draw primary research has total control on the research process. Hence, the researcher is typically asked to concentrate on a specific market or targeted market rather than the whole market.
- Data gathered during primary market research is fresh, which is ideal for special situations or particular targets of the marketers. Various methods that might seem irrelevant are used for gathering data during this research.
- The researcher collects data in order to find out past and current market trends, potential opportunities, competitors and threats to the business.
- The marketer is the owner of the information and he is not required to share the collected information to the competitors. This is a huge advantage of primary research.
Methods of primary research
There are three basic methods of primary research, namely, observation, survey and test marketing. These three types are further divided into various subtypes and categories. Following are the recognized methods:
- Observation: Customers’ actual behavior may differ from their responses at surveys or discussion. When you observe their behavior during shopping, at work, or at home, you get a clear idea about their true behavior.
- Survey: Survey is conducted in several ways including in-person survey, mail survey, online survey and telephone survey. In-person surveys are the most expensive but they also produce higher consumer response.
- Focus groups: A scripted series of questions is used to initiate discussion among a group. It takes at least three groups to get balanced results.
- Personal interviews: Personal interviews include more subjective questions like focus groups.
- Field trials: Selling newly launched products in select stores for test response helps with product modification including price and packaging modification. This is true in case of small business owners as well.
Depending on the requirement and nature of the report and market structure the exact method of primary market research is used.
MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world.
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