Market research is a vital process for any business that wants to understand its customers, competitors, and industry better. By collecting and analyzing data, market researchers can gain valuable insights into customer preferences, needs, behaviors, and satisfaction. Market research can also help businesses identify new opportunities, test new products or services, and evaluate their performance and positioning.
But what types of data can you collect through market research? And how can you use them to make informed decisions? In this article, we will explore the two main categories of market research data: primary data and secondary data. We will also look at some examples of how to collect each type of data.
Primary Market Research Data
Primary data is data that is collected by the researcher themselves or a third-party from the target market. It is unique to the specific research question and objective, and no one else has access to it. Primary data can be further divided into qualitative data and quantitative data.
Qualitative data is data that is non-numerical and is used to understand customer attitudes, perceptions, and behaviors. Qualitative data is usually expressed as opinions and includes descriptive information. Qualitative data is gained using open-ended questions, such as “What do you like about the product and why?”. Some common methods of collecting qualitative data are:
- Short customer experience surveys (online or by mail)
- Detailed questionnaires (online or by mail)
- In-depth one-on-one interviews
- Focus group feedback
- Customer observation
- Product testing and analytics
Qualitative data can help you explore the underlying reasons and motivations behind customer behavior. It can also help you generate new ideas, concepts, or hypotheses for further testing. However, qualitative data can also be subjective, biased, or difficult to generalize to a larger population.
Quantitative data is data that is numerical and is used to measure or track customer behavior and trends. Quantitative data is usually expressed as numbers and includes statistical information. Quantitative data is gained using closed-ended questions, such as “How often do you use the product?”. Some common methods of collecting quantitative data are:
- Online polls or surveys
- Phone or email surveys
- Web analytics or social media metrics
- Sales or revenue data
- Market size or share data
Quantitative data can help you quantify customer behavior and preferences. It can also help you test hypotheses, measure outcomes, and compare results. However, quantitative data can also be limited, incomplete, or misleading if not collected or analyzed properly.
Secondary Market Research Data
Secondary data is data that has already been collected by another source for a different purpose. Secondary data is readily available and accessible to anyone who wants to use it. Secondary data can also be qualitative or quantitative, depending on the source and nature of the data.
Some common sources of secondary data are:
- Government reports or statistics
- Industry reports or publications
- Academic journals or articles
- News articles or media outlets
- Online databases or directories
Secondary data can help you save time and money by providing existing information that is relevant to your research question. It can also help you supplement or validate your primary data by providing additional context or perspective. However, secondary data can also be outdated, inaccurate, or incompatible with your research objectives.
To summarize, market research can help you collect two types of data: primary data and secondary data. Primary data is original and specific to your research question, while secondary data is existing and general to your research topic. Both types of data can be qualitative or quantitative, depending on the method and source of collection. By using both types of data in a complementary way, you can gain a comprehensive understanding of your market and customers.
Final Thoughts
Market research can help you get to know your target customers. This in turn can help you build better, more cost-effective marketing campaigns that resonate with your target audience. If you’d like more information about how to carry out marketing research, or how to build a marketing campaign, feel free to take a look at some of the other articles on my blog.
