Secondary & Primary Market Research | Industry Analysis
Secondary Market Research
Secondary market research involves searching databases and articles to better understand the space the proposed business
will be operating in and how it is viewed by others. It is used in the business planning process to explain and predict
the important industry dynamics. Ratios and statistics are obtained and used as benchmarks. The analysis identifies external
threats and opportunities; trends that will affect the business over the next three years; and customer preferences.
Secondary market research is an essential first step before completing a market analysis. Benefits include:
- Understanding levels of maturity, growth and fragmentation in your industry
- Identifying industry leaders
- Understanding best practices, threats, opportunities and consumer preferences
Primary Market Research
Primary market research involves communicating directly with potential customers to better understand their attitudes and preferences.
This may involve surveys, one-on-one interviews or focus groups. A key goal is to understand what problems potential customers perceive
that you can help them solve. Key questions to answer include:
- What problem or problems will your proposed product or service solve for customers?
- How strongly do your potential customers perceive the problem you are proposing to solve for them?
- How are your potential customers solving this problem now?
- Who are your customers comparing you to and/or who is your competition?
- What groups of potential customers are most likely to perceive the biggest problem that your proposed product or service will solve? These are your highest priority or target customers or niche market.