You might be thinking that we live in the modern world where we have almost all the knowledge and know how and can learn and do everything on our own and does not need any guide and help from anyone out there. But this is not true at all. Even now, there are still a lot of people who believe in learning with the help of those who came before them. via primary market research advantages and disadvantages, primary market research methods and primary market research benefits

When conducting primary market research, you can gather two basic types of information: exploratory or specific. Exploratory research is open-ended, helps you define a specific problem, and usually involves detailed, unstructured interviews in which lengthy answers are solicited from a small group of respondents. Specific research, on the other hand, is precise in scope and is used to solve a problem that exploratory research has identified. Interviews are structured and formal in approach. Of the two, specific research is the more expensive. Figure 3.1 provides a sample cost analysis form for different research methods.

When conducting primary research using your own resources, first decide how you’ll question your targeted group: by direct mail, telephone, or personal interviews. If you choose a direct-mail questionnaire, the following guidelines will increase your response rate:

  • Questions that are short and to the point;
  • A questionnaire that is addressed to specific individuals and is of interest to the respondent;
  • A questionnaire of no more than two pages;
  • A professionally-prepared cover letter that adequately explains why you’re doing this questionnaire;
  • A postage-paid, self-addressed envelope to return the questionnaire in. Postage-paid envelopes are available from the post office;
  • An incentive, such as “10 percent off your next purchase,” to complete the questionnaire.

Even following these guidelines, mail response is typically low. A return rate of 3 percent is typical; 5 percent is considered very good. Phone surveys are generally the most cost-effective. Some telephone survey guidelines include:

  • Have a script and memorize it-don’t read it.
  • Confirm the name of the respondent at the beginning of the conversation.
  • Avoid pauses because a respondent’s interest can quickly drop.
  • Ask if a follow-up call is possible in case you require additional information.

In addition to being cost-effective, speed is another advantage of telephone interviews. A rate of five or six interviews per hour is typical, but experienced interviewers may be able to conduct more. Phone interviews also can cover a wide geographic range relatively inexpensively. Phone costs can be reduced by taking advantage of less-expensive rates during certain hours.

One of the most effective forms of marketing research is the personal interview. They can be either of these types:

  • A group survey. Used mostly by big business, group interviews or focus groups are useful brainstorming tools for getting information on product ideas, buying preferences, and purchasing decisions among certain populations.
  • The in-depth interview. These one-on-one interviews are either focused or nondirective. Focused interviews are based on questions selected ahead of time, while nondirective interviews encourage respondents to address certain topics with minimal questioning.

Examples of primary research methods include:

As shown in the list of methods above, primary research can either be quantitative or qualitative, or a hybrid of both.

Regardless of the method used, one thing remains the same: the research is exclusive and original.

Recommended Reading: 10 Types of Market Research to Conduct in 2021


The Benefits of Conducting Primary Market Research

If you were to say that primary research is less costly than secondary research, you wouldn’t necessarily be wrong.

Secondary research may very well be the cheaper option, often readily available online or through a database.

However, we believe that the benefits of primary market research strongly outweigh any of the costs associated with it.

Benefit #1: Data ownership

Access to secondary market research data may be limited. With primary research however, you and your company have complete ownership of the data that you collect.

Ownership of research data is important.

With an initial round of primary research under your belt, you and your company have the ability to look back and compare future waves of data to see how your company fared previously.

The most important benchmark in market research is you! With data ownership, you have the ability to see how you and your company have done within a certain time frame.

Benefit #2: Relevancy

You’ve searched tirelessly for information on your target audience, and you’ve finally come across a data set from a relevant study!

There’s just one problem: the study was conducted five years ago.

If there’s one thing we can all agree on, it’s that in this day and age the world is constantly changing.

Consumer attitudes and market trends change regularly, and data from a study conducted last year may not apply to today’s market conditions.

With primary research conducted now, you can guarantee data that is timely and relevant.

Consumer attitudes and market trends change regularly, and data from a study conducted last year may not apply to today’s market conditions. With primary research conducted now, you can guarantee data that is timely and relevant.

Benefit #3: Targeted approach

When conducting a primary market research study, you have complete control over how it is carried out. You can tailor the entire study to fit the needs of your company.

Often times, when searching for secondary research data, you may have a hard time finding information that aligns with your company, your goals and objectives, and your preferred target audience.

When you have the ability to execute a fully custom research study, you get to set the objectives, you get to choose the methodology used, and you get to choose the audience that you sample.

At the end of the study, you have data relative to your specific, targeted audience rather than the mass market to which most secondary research applies.


Finding A Primary Market Research Vendor

One of the best ways to conduct custom market research is through the use of an independent, third-party vendor like Drive Research.

Market research vendors are composed of neutral, unbiased teams of researchers who can help you collect unique and original data that can uncover possible pain points for both customers and employees alike.

Why do you need to conduct primary market research? Well, in order to:

  • Validate your product idea
  • See if people actually need your product/service
  • Find out how much potential consumers are ready to pay for your product

The two types of primary market research

You can gather two types of information when conducting primary market research: exploratory or specific. The exploratory research helps you define a specific problem. It is all about unstructured interviews where a small group of respondents answers to open-ended questions.

Obviously, these interviews can take quite long and the information gathered can be a lot. Exploratory market research is a good thing to use in order to find out the general feelings regarding the product or service you are intending to launch. It helps you understand whether you should do it or not.

The second type of primary market research is the specific research. It is exact in scope and is mainly meant to investigate the patterns that exploratory research had brought about. And if we were to compare the prices of these two types of primary market research, we would see that the specific research is way more costly.

I usually apply the following primary market research techniques:

Interviews

Primary Market Research

There are a lot of types of interviews like telephone interviews or face-to-face interviews. They allow quicker feedback than most surveys. But the downside of telephone interviews is that people sometimes are too busy to give you detailed answers. As for the face-to-face interviews, they can be quite expensive but they are worth the money.

Online surveys

Primary Market Research

This one is becoming one of the most popular methods. And it is relatively affordable, too. I know a few small businesses that use online surveys quite often. Because these are a really good way of capturing the views of existing and potential customers.

Focus groups

Primary Market Research

It’s when you gather groups of potential customers in one place and ask them open-ended questions to explore their feelings about the market and the product. Focus groups can be a perfect way to gather information about the customers’ preferences, interests, and tastes.

Observation

Primary Market Research

This method involves watching how consumers behave when interacting with a product. The product can be something similar to the one you are intending to create. I like observing people while they are interacting with mobile apps. It’s a damn interesting thing to do, and you get a lot of authentic insights, too.

Conclusion

You might be thinking that we live in the modern world where we have almost all the knowledge and know how and can learn and do everything on our own and does not need any guide and help from anyone out there. But this is not true at all. Even now, there are still a lot of people who believe in learning with the help of those who came before them. via primary market research advantages and disadvantages, primary market research methods and primary market research benefits

OK. Now that you know quite a lot about primary market research, it’s time that you actually try it out. Market research is fun! It’s not that scary. I used to overlook it when I was a beginner product manager. But through time, I got to understand how precious market research is and how much information it can provide you with.

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