Primary market research supports businesses to gain first-hand insights and information which isn’t already available about the market which they operate within to support decision making and the growth of the business. This video explores the common methods of primary market research which are used by businesses to collect first-hand insights and information from customers and the target market, finishing with a comparison of the key benefits versus drawbacks of primary market research in business. Primary market research is typically designed and conducted by the business itself. However, it can also be conducted by external parties such as a specialist market research agency on behalf of the business if they choose too. There is a variety of methods available to use when conducting primary research to ensure the research provides results which are specific to its own circumstances. The common primary market research methods usually target the business’ customers or target market and include: Surveys and Questionnaires, Focus Groups and Interviews, Observations, and Test Marketing. Essentially, primary research is brand new research which involves the collection of new data and information that isn’t already available for the business and usually conducted for a number of purposes including: identify customer needs, identify gaps in the market, reduce risk, and ultimately make better decisions. Often people use the terms survey and questionnaire interchangeably but there is a difference between them, and it is vitally important for businesses to understand these differences before conducting market research. A questionnaire is any written set of questions, typically researchers will use a mixture of open and closed questions aimed at collecting information about individuals. Whereas a survey is not only a set of questions but also the process of collecting and analysing the responses from the questions, looking for trends, behaviours, and the bigger picture. Put simply a questionnaire forms the foundations and a survey is the whole process including the method used and analysis of the findings. Surveys come in a variety of formats and typically offer a convenient and cost-effective solution for businesses where a response is required from a larger population. Often, they contain a series of pre-written questions and are commonly used online via third party platforms such as Survey Monkey, Google Forms, and Typeform etc. However, surveys can also be paper based and sent out in the post, which is known as a postal survey. Alternatively, they can also be conducted in person as part of an interview or focus group with the aim of collecting the opinions of participants which are usually customers or members of the business’ target market. You may have witnessed first-hand surveys being conducted via interviews as you walk down the high street or shopping centre, where members of the business stop members of the public and ask them to complete the survey. They are often short in length but getting the balance right through the number of questions is difficult to judge. If the survey is too long, participants may not finish or will rush the survey, alternatively if the survey is too short it may not provide the business with sufficient data. Surveys are an extremely popular way for businesses to gather vast amounts of feedback about their customers experience and views of their products in a short timeframe but often lack depth. As it’s difficult to engaged participants and they may not take it seriously. Sky are a good example of a business using the survey method. After a phone call with a member of the customer service team at Sky, customers will be surveyed through a series of text messages asking them about their experience and how it could be improved. Businesses such as Argos also use surveys to collect customers thoughts on their purchase through an email campaign which is typically sent a week after purchasing the product. Focus groups and one to one interviews are often used to collate more in-depth information than a business would typically receive from a standalone questionnaire. A focus group is essentially an interview with a select group of people, whereas a one-to-one interview is with just one selected person, the participants of both methods would typically be members of the business’ target market or customers of the business already. Some businesses choose to run this process on a regular basis, which could be monthly or quarterly etc. allowing them to track trends and any changes to the wants and needs of its target market. Businesses also have the choice who participates in the process, it may recruit participants to take part in the research process on numerous occasions, or it may vary participants each time depending on what the aims of the research are. Either way, both have a more formal feel to them, within which participants have chosen to participate either on a voluntary basis or because they have been paid. Therefore, the process is typically taken more seriously by the participants who provide more thoughtful answers and often provides the researcher with the naturally opportunity to expand on any key points and ask further questions if it would benefit the research findings. Conducting primary research via focus groups or one to one interview often results in fewer participants in comparison to sending out a questionnaire electronically and the busines often must invest more time and money into the process for a smaller range of results. Whilst the response given by participants are often more accurate due to the formal approach, the size of the focus group or amount of people who take part in one-to-one interviews can really impact how representative the findings are. For example, if a focus group is too small, not enough information will be collected to be representative of the target market’s population but too many participants may cause some participants to not get involved or have the chance to contribute. A famous example of focus groups being used as part of the primary market research process and influencing change is Chrysler Plymouth. Back in the 1950s, successful car manufacturer Chrysler Plymouth was struggling with sales of its convertible until the findings of focus group indicated that it was in fact wives and not husbands who were choosing more sensible models over its convertible range. This ultimately led Plymouth Chrysler to adapt its advertising strategy to target women specifically, something it hadn’t done before. This resulted in increased sales for the business and influenced the car industry as a whole with competitors soon following suit. Observing the behaviour of customers provides businesses with genuine insights into the experience of customers when interacting with a business and what influences them in both a positive and negative manner. When observing it is very common for business to try and spot patterns and trends between customers and generate reasoning behind their behaviour to influence them in the future on a wider scale. This could be as simple as a general observation of a customer’s journey whilst in store from the moment they walk into which isles they go down, how long they stay on each isle for, what attracts their attention, and ultimately what they purchase. Even having information which many people would potentially consider minor about customers such as: the path the typical customer takes around the store, and the impact of different promotions, or product placements on their buying behaviour etc. A business is able to use this information to firstly improve their experience by making changes to the store layout and promotions used etc. to ultimately influence their behaviour in a positive manner with the aim of increasing spending and their happiness and willingness to spend with the business. However, it is important to understand that the findings of observations can be subjective and often leaves many questions unanswered as a result. Many businesses utilise test marketing to trial their products, reduce the risk, and gain feedback from the target market before launching it on a larger scale. Typically, test marketing is conducted in smaller geographical areas where the business is based or its target market can be reached. Test marketing is very common in industries such as food retail, especially for products which are new to the market and not very well known by the target market. Let’s imagine a small independent ice cream brand approaches a supermarket to sell its range of low calorie vegan ice creams, if the supermarket’s buyers believe the product could sell and be popular with its customers, it is likely that they will initially purchase a small quantity of the product and trial the product in a small selection of its stores to gain as much information as possible before committing to an increased order and a nationwide launch. During test marketing, aswell as sales data, the supermarket would usually be looking for marketing mix information by focusing on the product itself and how it meets the wants and needs of the target market, the selling price and whether customers are willing to pay this amount, how appropriate the distribution channels are, and how effective promotional material and marketing activities have been to influence buyer behaviour. By conducting test marketing, businesses often receive a number of key benefits which include gaining real data and insights as the research is based on actual customers rather than just potential customers who participate in a survey. Which, in turn helps to reduce the risk of a nationwide launch failing as the business can utilise the research findings and feedback from customers to amend the product and any related elements of the marketing mix prior to the nationwide launch. As the product is launched, albeit in just a few locations it can really help to create hype around the product, especially if it is popular with the initial customers who purchased during test marketing. However, it’s important to be aware of the potential drawbacks of test marketing. Not only can test marketing be an expensive and time-consuming method of primary research, but the results may also not truly represent the target market of the business which can influence the business to make decisions based on the customers who were involved rather than the target market as a whole. So now we have looked at some of the common primary market research methods, lets quickly explore the benefits and drawbacks of a business conducting primary market research. A key benefit of primary research is that it is designed and conducted by the business or on behalf of the business to meet its requirements and aims, therefore the findings are specific to the business. Primary market research is also relevant, up to date, and the business has the flexibility to conduct research when it is required which is so important in today’s fast paced business world, where research which is a couple of years old could be completely outdated and inaccurate. The business can also design the research to contain a mixture of quantitative and qualitative data which in turn makes the research more useful and reliable to make decisions from Also, competitors have no access to the data, giving the business a competitive edge. Whilst some methods can be quick, easy, and relatively cheap to conduct and analyse, primary market research is generally expensive as the business either has to either train and pay existing staff to complete the process or can outsource the work which in turn means they will pay a premium. Either way, primary research can be a very time-consuming process dependent on the methods chosen and results aren’t instant. Which can be frustrating and delay progress in the business such as a delayed product launch until the results are analyse and informed decisions can be made. There is also the risk of research bias as the participants and research samples chosen by the business may not be representative of the population of its target market accurately. And finally, It’s very important to note that it is difficult for most businesses to attract customers to participate in the market research process and when they do, there is a risk that they may not take it seriously which results in accurate findings. So that’s it, primary market research explained. If you want to find out more about the purpose of market research or secondary market research methods etc. just head over to our YouTube channel and watch our videos where we go into depth and provide examples of these in action. Thankyou for listening, I hope that’s helped you to understand primary market research. 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