Businesses Approach To the Use of Primary and Secondary Research - Essay Example

Research in business Secondary Research Secondary research in the market involves gathering information with a cross reference to the various research done by the previous agencies or researchers. One can easily locate such research for the sake of analysts. Accessibility is easier through the online sources. Sometimes it may not be customized to needs of the researcher. Secondary research may compose the statistical analysis and informational research. Statistical analysis involves research with the use of the data in the governmental warehouses and store data banks. Informational research incorporates the use of the print media, through continuous checks of reliability and consistency. The data gathered is put into use by a third party. In essence, it remains a broad and a diffuse data in a contained toolbox, since it does contain any virtual information useful in any market research context. The information is also very important since a large number of the organizations utilize it as they strive to improve their operations in the market. It is an all-purpose market tool, and the corporate board is always at the dispensation of seeking its reference for the sake of comparison of the market trends. It also remains the most accessible form of market research, which is also cheap with relation to the cost (Teece 2010, pg. 174). Internal secondary research will entail any information that is gathered anywhere in the environmental angles of the firm. It includes categories such as sales report, the customer databases, a y past report of the primary market research. A sales report will break and dispense information in categories of region, times and the sales extent. Sometimes they can also give analytical reports of the distribution channels, discounts extents and target customers categories. Databases will contain the description of the customer’s data. The primary market research will contain survey or focus group’s result that is done in the previous years (Bryman & Bell 2007, pg. 92). External research entails any information that is gathered by the commercial vendors, government agencies and other diverse sources. Of utmost importance is a syndicated report, which tends to compile the data with the use of libraries, data calls, and other databases. Concisely, they aim at selling the information to as many firms as possible. The information has passed through the analyst's hands hence it is reliable. Advantages Secondary research is accessible at the minimal costs available. One can do a secondary market research for the firm from as low as 10000 dollars. It is readily available in the form of stored databases and research materials, as one just has to trace and access it. Internal data is useful in utilizing the categories and breakdown. It utilizes the internal analyses, as compared to the external analysis, which may not have enough knowledge on the firm progress. An external secondary data will also represent a clear picture of the external business world. Businessperson with rich and vast and rich experience on the business trends analysis had compiled such analysis. An external source is also specific and very close to being correct. They can be useful in approving or disapproving a theory. They also usher in a general background of the market analysis. In addition, they bring a new set of information findings; however, they have to receive credible degree of reliability and validity prior to utilization. Disadvantages A great drawback of secondary research is the diverse purposes that any data seeks to address. Every data were collected for a particular reason, which may not match the exact purpose. There is a lost aspect of specificity and lack of comparable breakdowns. Sometimes the data may also be of questionable validity and reliability. In addition, any internal data is only at the dispensation of explaining the existing customers, rather than the market description as a whole. The data may also be too old and hence not reliable for use, especially with the globalization aspects of most businesses. Primary research Primary research involves collecting original data for the sake of the business needs. The goal is to create a plan that is set to improve the operation of the business. A research plan is in use after the team taking part in it gains immense insight into the core objective of marketing. The marketing firms such as the film's companies and other marketing departments often conduct primary research. Primary research takes place in an instrument aimed at collecting data or critical information, which is later analyzed. Primary research tends to communicate of the actual report of a direct observer of what is happening in the field. It is the perception and the view of the target market in the field. In essence, it contains the firsthand information that has not been subjected to any bias. Primary data and research may encompass the use of interviews, questionnaires and observations (Zott et al. 2011, pg. 1020). Advantages A firm conducting primary research always addresses the issues that are facing it at hand. It addresses the hot aspects of the organization. It is the epitome of the research, and always allows the top management levels to address the first hand problems that are affecting the firm. Moreover, the firm has great control over the issues that are affecting the firm. The marketer can control the extent in which the information is being collected. Such aspects include project size, geographical areas or marketing strategies. Therefore, the firm is justified to spend their funds on researches that will help them. It is in comparison with the secondary research, which is ambiguous and may not necessarily help the firm. In addition, it also allows ownership of information. The collected data is private and hidden from access by the competitors. Disadvantages Primary research may be expensive and time-consuming. The process s of research preparation; execution and analysis is at the dispensation of consuming many of the company’s resources. For effectiveness and efficiency, ample time has to be taken, so as not to prepare shoddy work. Some research markets may lack the feasibility angle, for example, it may be difficult for one to conduct an interview to all the employees working in an international firm. The sampling process may also be difficult. The epitome After in-depth analysis of the various research methods a firm can utilize for effective marketing, it is evident that primary research is the most useful. It does not only reflect the reality happenings in a firm but also maintain the privacy of the information collected. Furthermore, the recommendations made are also realistic to the weaknesses of the firm. Despite the drawbacks of the method such as being time consuming and expensive, the overall returns are also beneficial. References Bryman, A. & Bell, E., 2007. Business Research Methods, Teece, D.J., 2010. Business models, business strategy and innovation. Long Range Planning, 43, pp.172–194. Zott, C., Amit, R. & Massa, L., 2011. The Business Model: Recent Developments and Future Research. Journal of Management, 37, pp.1019–1042. Read More