| Research, Market -Primary and
Secondary
Primary Research
Simply put, primary research is research that's tailored
to a company’s particular needs. By customizing tried-and-true approaches
-- focus groups, surveys, field tests, interviews or observation -- you
can gain information about your target market. For example, you can investigate
an issue specific to your business, get feedback about your Web site, assess
demand for a proposed service, gauge response to various packaging options,
and find out how much consumers will shell out for a new product.
Primary research delivers more specific results than secondary
research, which is an especially important consideration when you’re launching
a new product or service. In addition, primary research is usually based
on statistical methodologies that involve sampling as little as 1 percent
of a target market. This tiny sample can give an accurate representation
of a particular market.
But professional primary research can be pricey. Tabs
for focus groups can easily run from $3,000 to $6,000, and surveys cost
anywhere from $5,000 to $25,000 and up. Do-it-yourself research is, of
course, much cheaper. Services that provide online survey tools usually
charge a flat fee (typically around $1 or more per response) plus a setup
fee. There are also a host of software products available that will help
you conduct your own online and offline primary research.
Secondary Research
If you’re considering extending your business into new
markets or adding newservices or product lines, start with secondary research.
This type of research is based on information gleaned from studies previously
performed by government agencies, chambers of commerce, trade associations
and other organizations. This includes Census Bureau information and Nielsen
ratings.
You can find much of this kind of information in local
libraries or on the Web, but books and business publications, as well as
magazines and newspapers, are also great sources.
Although secondary research is less expensive than primary
research, it's not as accurate, or as useful, as specific, customized research.
For instance, secondary research will tell you how much teenagers spent
last year on basketball shoes, but not how much they're willing to pay
for the shoe design your company has in mind.
From: AllBusiness Web Site, Secondary
vs. Primary Market Research |
