Breaking down market research
We've been talking about market research a lot lately, so we figured we'd break down what the traditional definition of market research is and how this has changed and developed in the last few decades with the advancement of technology.
First, let's cover the basic definition of "market research". Market research is the gathering of information about consumer needs, wants, and preferences. These consumers form a market. By conducting market research, an entrepreneur can determine how to develop a product effectively, based on the market's preferences.
Next, let's look at the distinction between primary and secondary market research.
What is primary market research?
Primary market research is when you (or someone you've hired) conduct your own testing and research using a variety of different researching options. You don't rely on other sources as you create your own research results from scratch by setting up and conducting your own experiments. This means that the research conducted is customized to your project and is created based on your specific requirements and structure.
There are advantages and disadvantages to this type of research. While it is very advantageous that the research is customized for your specific project, setting up and conducting the research can often be very time consuming. There are also a variety of options when determining which type of primary research is suitable for you. Do you want to use surveys, focus groups, interviews, observational research, or do you want to set up experiments and field trials? Choosing and creating the optimal structure and deployment of your research is an important, but often overwhelming and daunting task. It can also be quite costly, whether you're doing it yourself or you are hiring an external person or firm. However, the results can be directly applied to your project and may give you the insights you've been searching for.
One of the quickest, easiest, and most affordable ways to conduct primary market research is to use CrowdPicker!
What is secondary market research?
Secondary market research is when you search for and find other sources that can provide you with relevant information or research results. These sources can include published reports, publicly available statistics, books, journals, magazines, and more.
Although secondary market research tends to be much more affordable (usually free), and access to it is quick so that you can determine it's value immediately, it is much more difficult to find research that is relevant to your specific project. This means that research you do find will have to be interpreted in order to fit your particular project which can make the results less reliable than those of primary research.
Whether you're conducting primary market research or gathering your data using secondary market research, the insights you gather can be very useful to your product development.