When overseeing market research, it would be beneficial for a company to use both primary and secondary market research. This paper will cover the different tools necessary to conduct primary and secondary research. Secondary market research is research that has already been prepared by other companies and is available in various types of forms to be used by others, such as graphs, and charts. Primary research is research performed by a specific company and custom-made to that companies wants and needs.
Tools Used in Secondary Research
In secondary market research a company will analyze data that has been collected for some other purpose. This type of research saves a company the cost of collecting data so it is more cost-effective. Secondary research should be utilized when starting a new business or making changes to an existing one. There are numerous secondary research tools that an organization can utilize. It is important to look at research performed by other local companies in the same area. Local chambers of commerce will maintain resources that can be beneficial to many companies. Also local libraries are a reliable resources to locate data that could be useful. Trade magazines and books are another trustworthy research tool filled with valuable information. Sometimes a company can obtain data straight from their competition. It is not unreasonable to just directly ask for company brochures, menu of products and services, prices, and annual reports (Higley, 2011).
Tools Used in Primary Research
Primary market research is research organized by a specific organization and tailored to that specific organization’s wants and needs. A good example of primary market research would be a focus group that asks consumers about a service or product. A focus group is a group of consumers assembled for a specific purpose, such as to use a product and then respond to questions concerning that product. Focus groups let the observer ask certain questions about the product and collect important feedback. However, these focus groups can be tainted when participants start thinking they have to have similar answers as the other participants. Another example of a primary research tool is surveys. Surveys are a marketing tool that can be sent out to consumers in a certain area to gain data about what kinds of products or services are being used. Surveys can isolate a target market, and they can offer other specific data related to the company overseeing the research. Surveys can be expensive, but the data collected is centered on a specific population and is a trustworthy representation of the population as a whole. Comparable to focus groups are interviews. Interviews are performed on a one-on-one basis, so they cannot be tainted by individuals feeling the anxiety to answer like how others answer. Interviews can be more time-consuming and costly. However, they are one of the most valuable research tools. They differ...