Question

Marketing

Overview
Companies who want to grow their markets rely on market research to help determine consumer behavior and the most likely new potential marketplaces. Some companies design and conduct their own market research (primary research) while others choose to utilize data from existing market research conducted by other firms (secondary research).
Simulated Business Scenario
Vanessa is the owner of a well-known brand of handmade decorative items such as dream catchers and candle holders. The brand, Sirrah, has a reputation for designing and selling high-quality items at premium prices. Considering current economic conditions and the increasing influx of similar but inferior products from foreign suppliers, Vanessa is interested in expanding Sirrah into new markets.
Vanessa knows she needs to research various aspects of new potential marketplaces to determine customer insights and if a new market will tolerate new competition from her Sirrah brand. She is on a limited budget so, she is faced with two choices:

Design and conduct first-hand market research which is tailored to her specific marketing needs (primary research). Much more costly to implement but much more exacting to Vanessa's brand expansion.

Purchase or license existing research that is available from government agencies, trade associations, and marketing research firms that sell research reports (secondary research). Less specific but much less costly.

Questions
What are a few examples and pros and cons of primary and secondary research?
Which research would you advise Vanessa utilize to support her market expansion?

Answer 1

Answer + Explanation:

1)

Pros of Primary Research :

1. it addresses specific research issues.
2. As the data is collected personally it is directly related to research study
3. It helps the researcher to obtain original data that is very specific to his needs of researching.
4. The data is accurate and reliable.
5. The data is up to date.

Cons of Primary Research :

1. It is a costly process.
2. It is a very time consuming process.
3. Inaccurate feedbacks could lead to collection of wrong data and information.
4. This type of research requires a lot of resources for collecting data.
5. It is not as readily accessible.

Pros of Secondary Research :

1. It is inexpensive mode of data collection.
2. It is easily accessible .
3. It is immediately available
4. it saves time of the researchers
5. It may help to clarify the Research question, understand the research problem and lead to a new conclusion of the data.

Cons of Secondary Research :-

1. The data is frequently outdated.
2. It is potentially unreliable as the source of information is unavailable.
3. The data may not be applicable to the research questions as it is not taken on the basis of the exact research problem.
4. It may degrade the quality of research.
5. the data may be outdated or incomplete.

2)

Vanessa should use a mix of both primary and secondary research. She must frame questions for the primary research based on the secondary research where she must include those specifications, questions and information that has not been covered through the secondary research surveys .The primary research will prove costly to Vanessa ,however as she is selling handmade high end pricey products, the cost of research can be included in the prices of the products which will give her a market edge in comparison to other market competitors .She will be possessing much more reliable and specific information about target consumer taste and preferences which will help her to formulate the production, stock and pricing strategy of her products.