Primary-Market-Research

What is primary market research?

• Primary research is the process of gathering information directly from consumers in the target market using field research methods such as surveys, interviews, focus groups or trialling

  • This research gathers information which is new and does not already exist in any format

• A business will often use more than one method of primary research in order to build up a reliable understanding of the market

  • The data can then be analysed and used to make data-led judgements such as how much to charge for a new product and where to sell it

The use of questionnaires

• A questionnaire is a set of questions that are intended to find out customers’ opinions

• Questionnaires are used in surveys, interviews and focus groups

• Questionnaires are commonly made up of open and closed questions

  • Open questions seek detailed opinions and allow customers to respond in depth, using their own words

    • E.g.,What is your opinion on our new advertisement and why?’

    • This question would allow someone to express their thoughts about the new advertisement and give the reasons for their opinion

  • Closed questions seek brief, often numerical responses, which do not allow respondents to give reasons for their responses

    • E.g. ‘Rate this advert on a scale of one to five’

    • This question would capture simple responses that could be used for statistical analysis

• Businesses need to have a clear goal they want to achieve, and ask questions that focus on this goal

Surveys, interviews and focus groups

• The most commonly used methods of primary market research include surveys, interviews and focus groups

Methods of primary research

Product trialling

• Products are sold or given away for a limited period to the target market to gauge their response to the product

• Customers are asked to review products and provide detailed feedback to allow changes to be made before the product is formally launched

• This reduces the risk of failure when a product is launched, as problems are likely to have been identified during trials:

  • Safety issues can be resolved before the product is widely sold

  • Product features can be improved to better meet customer needs and wants

  • Packaging can be amended to better appeal to a wider audience

  • Cost savings can be identified and implemented for larger-scale production

• Care must be taken to trial a product with reviewers whose needs reflect those of the customers most likely to purchase it

  • E.g. Mosh engages with fitness professionals to test new versions of its protein-based Nutrition Bars before they are launched

Evaluating primary market research

• Primary market research should be able to answer many of the specific questions businesses have about their customers, competitors and market conditions

• However, it can be costly to conduct

  • Small businesses are likely to be limited on the type and scale of primary research they conduct

Advantages and disadvantages of primary market research