Business Approach to the Use of Primary and Secondary Research - Essay Example

 Critical Evaluation of Business Approach to the Use of Primary and Secondary Research Introduction Multinational organizations or a business start-up, market research is an integral part of any business plan. For a successful business launch or introduction of a new product into the market, it is vital that you know and make certain that a sustainable market exists for your product or services. Understanding clearly, the demands and expectations of your audience or potential customers, also plays a significant role in determining the success or failure of a business start-up or product launch (Brandenburg, 2009). Primary Market Research and Secondary Market Research are the two categories of market research. In order to get an overall adjusted and faultless depiction of the requirements, demands, and needs of your business, primary and secondary market research should ideally be used in concurrence with one another. Neither can be used as a standalone tool to gather all the vital and relevant information for a successful business plan. However, using both enables a business to gather all the required data needed to identify and reach the target market. Utilizing primary research alone, without first seeing what has or has not worked for different organizations, is liable to expedite insignificant inquiries or missed chances. In the meantime, depending singularly on secondary research is prone to disadvantage you with responses that are ambiguous or inappropriate to your particular target market (Brandenburg, 2009). Business environment research commonly entails sociographics, market size and trends, business regulations, and demographics to develop a customer and/or competitor profile (Queensland Government, 2013). Primary Research The prime focus of primary research is to gather and unearth original data. To encompass data collection and data input and then analyse the results is vital for any effective and successful business plan attempting to reach its target audience (DJS Research Ltd). Primary research is conducted to acquire information about the unanswered or vague questions. In order to collect relevant data, one starts from the scratch and every step of the research process needs to be completed. It can also be said that data is collected from the real world in primary research (Penn). Using various means and strategies, a business collects data on its own or hires someone to collect data and information on its behalf. Examples “Following are the three common examples of primary research; Interviews: Interviewing participants with usually closed end questions in a small group or individually. Surveys: Using a short questionnaire, target participant’s opinion and behavior data is collected. Observations: Measurable events and people are observed in the real world setting to gather the required data. Advantages Primary research is readily available for analysis and repetition as it is computer cod able. If catering to a larger population, it allows generalization and multiple comparisons between variables. Another advantage is re-questioning of target respondents or interviewees, and can be verified by means of replication. It can be quick and cheap with small sample and participants can be overt or have masked identities according to the requirements. Disadvantages Primary research is usually time consuming, expensive and due to over- reliance on statistical analysis, might lose case study data and individual meaning. The comparison and analysis of answers is difficult when respondents interpret questions differently. In primary research, the validity of the generalization can be affected as the selection might be non-random and the response rate can also be low. Closed questions make it difficult to judge the honesty of responses as they constrain the data (Primary and Secondary Research). Secondary Research Secondary research is the study, analysis, and collection of data from the findings, facts and figures that are already organized and researched in-line with the requirements of a business plan. It is a method of gathering information from research already conducted by others and is a past analysis of the concerned area. The required information can be filtered from the existing and varied databases (Penn). Secondary research is often a good starting point for a business to begin gathering information and analyzing it to reach the target market of its product or service. Examples “Three common examples of secondary research are; Internet: Vast amount of information is available on the internet for the purpose of collection and analysis in-tune with the secondary research plan. Market Research Results: Secondary research can be carried out from existing market research results conducted by others. Agencies: Information regarding the target audience, product or service can be obtained from libraries, industrial bodies and different government agencies (Queensland Government, 2013).” Advantages Secondary research is a feasible option for small scale businesses due to low cost and easy accessibility. It may very well be the only option for many start-ups and small scale operations. It is also viable for analyzing large scale population samples and trends. Secondary research is relatively easier to conduct as it can be managed from a desk. Disadvantages Secondary research might lack consistency of perspective. There are concerns of data separation from context and collection and also about inaccuracies and biases. Reliability of data is also questionable, as the research is not conducted by you but by someone else (Primary and Secondary Research). Conclusion Business research is most effective in achieving its goals and reaching the target market for a product or service, when both primary and secondary research methods are used. Take for example the intended launch of a new printer in the market. For secondary research, a business might use existing user feedback of comparable models. Prices and features of models already available in the market can also be researched from various available sources. For primary research, interviews of potential customers and surveys of target population can be conducted (My Market Research Methods, 2011). This would help in gaining an insight into what features do the potential customers expect from a new printer, and within what price range? Both primary and secondary research methods can stand alone, independent of one another. However, it is better that both are used in conjunction with one another as data from both methods can be analysed for formulating a better business plan. References Brandenburg, E. (2009, December 3). Blog posts tagged primary v secondary research | Start Up Donut. Retrieved from http://www.startupdonut.co.uk/blog/tag/primary-v-secondary-research DJS Research Ltd (n.d.). What is Primary Research? Retrieved from http://www.marketresearchworld.net/content/view/802/ My Market research Method (2011, October 27). Primary vs. Secondary Market Research. Retrieved from http://www.mymarketresearchmethods.com/primary-secondary-market-research-difference/ Penn , J. (n.d.). What Is The Difference Between Primary Research And Secondary Research? - Blurtit. Retrieved from http://science.blurtit.com/93601/what-is-the-difference-between-primary-research-and-secondary-research Primary and Secondary research (n.d.). Primary and Secondary research: Review of Research Options. Retrieved from http://www4.caes.hku.hk/acadgrammar/report/resproc/research.htm Queesnland Government (2013, November). What's included in market research | Queensland Government. Retrieved from http://www.business.qld.gov.au/business/starting/market-customer-research/market-research-basics/what-included-market-research Read More