Methods of market research to include primary and secondary:

The idea

Market research methods fall into two broad types. Primary research collects new data first-hand for the business's own purpose, for example surveys, interviews, focus groups, observation or test marketing. It is tailored and up to date but can be slow, costly and limited in scale. Secondary research uses data that already exists, such as government statistics, competitor reports, trade publications, loyalty card records or internal sales figures. It is often quicker and cheaper and can cover a large population, but it may be out of date, not specific to the business or collected for a different purpose. A business often combines both: secondary data identifies a possible opportunity, then primary research tests whether its own customers would buy the product. Choosing a method depends on budget, timescale, the accuracy needed and the nature of the decision.

What earns the marks

• Defines primary research as new data collected first-hand by or for the business, and gives at least one method such as a survey, interview, focus group, observation or test market.
• Defines secondary research as the use of existing data collected by someone else, and gives at least one source such as government statistics, trade reports, competitor websites or internal records.
• Compares the two types, for example primary data is more specific and current but slower and more expensive, while secondary data is quicker and cheaper but may be less relevant or out of date.
• Applies a suitable method to a business decision, explaining why that method fits the budget, timescale or information need.
• Explains that the two types can be used together, with secondary research narrowing the options before primary research tests customer response.
• Recognises that the choice of method affects the quality and usefulness of the findings, including sample size and possible bias.

Common mistakes and how to put them right

• Calling any information found online secondary research.

  Put it right: Data collected first-hand through an online survey is still primary research.

• Assuming secondary research is always worse than primary research.

  Put it right: It can be cheaper, faster and broader, and is often the sensible starting point.

• Describing a method without linking it to the business decision.

  Put it right: State what the business wants to find out and why the chosen method suits that purpose.

Exam tips

• Name the method and classify it clearly as primary or secondary before explaining its strengths and weaknesses.
• Use comparative language such as quicker, cheaper, more specific or more representative to show analysis rather than description.
• Apply each method to the case study business, stating what it would ask, who it would ask and how the findings would be used.