Types of Market Research – Market research is defined as the process of evaluating the feasibility of a new product or service through research conducted directly with potential customers.
Market Research allows organizations or businesses to find their target market, collect and document opinions, and make decisions according to their target markets. Market research can be carried out directly by organizations or companies or it can also be submitted to those who have expertise in this Market Research process.
Market research can be done through disseminating surveys, interacting with groups of people also known as samples, conducting interviews, and other methods.
The main purpose of conducting Market Research is to understand or examine markets related to a particular product or service and to find out how your audience or potential customers will react to a product or service. Information obtained from conducting market research can be used to adjust marketing or advertising activities or to determine what are the priority features and other service requirements of consumers. Also read what is Market Research and its process.
Types of Market Research
Market Research in general is divided into two main types of research depending on the tools and methods used. The two types of Market Research include the Primary Market Research and Secondary Market Research.
1. Primary Market Research
Market Research or Primary Market Research is a process in which an organization or business deals with end customers or hires third parties to conduct relevant research to collect data. In other words, Primary Market Research is research conducted directly involving the sources to be studied. Data collected can be in the form of qualitative data (non-numeric data) or quantitative data (numerical or statistical data).
When conducting market research, there are two basic types of information that will be collected, namely Exploration Information and Specific Information.
- Exploration: This research is public and open and usually involves lengthy interviews with individuals or small groups.
- Specifics: This research is more appropriate and is used to solve problems identified in exploratory research. This involves formal interviews that are more structured.
Examples of Primary Market Research include:
- Interview (telephone or face to face)
- Survey (online or mail)
- Questionnaire (online or letter)
- Focus group
2. Secondary Market Research
Secondary Market Research or Research is a type of research that has been compiled, collected, organized, and published by other parties such as study reports published by government agencies, trade associations, the media, and university research results.
Secondary Market Research is usually used by small businesses with limited budgets. This type of research can be obtained faster and more affordable when compared to Primary research.
There is a lot of secondary research available directly on the Web, only by entering keywords or sentences for the type of information desired. Secondary research can also be obtained by reading articles in magazines, trade journals, and industry publications or by contacting industry associations or trade organizations.
However, it should be noted that when we find the desired research, the important thing to do is to check the date of publication to make sure the data obtained is the latest data and not out of date.
One very good source of secondary research data is data from government agencies. Data from government agencies is usually available free of charge and can be accessed by the public. On the other hand, data published by a company may require prior permission from the company and may also require a certain fee to be able to access it.