[Updated] Primary & Secondary Research - An Introduction

Summary

This video explores the role of primary and secondary research in strategic planning. It outlines the benefits and drawbacks of each, using the example of a café conducting competitor analysis. Secondary research involves gathering existing data, which is quick and cost-effective but not always specific. Primary research, on the other hand, is tailored but can be time-consuming and expensive. The video suggests starting with secondary research before considering primary research to make informed strategic decisions.

Takeaways

• 📚 Strategic planning involves conducting various types of research and analysis, including both secondary and primary research.
• 🔍 Secondary research involves collecting existing data, such as financial results and online presence of competitors, from business databases and online platforms.
• 📊 Primary research is conducted specifically for the organization's needs and can include questionnaires, focus groups, and tracking online behaviors.
• 📈 Marketers use qualitative and quantitative research methods, and consider terms like validity and reliability when assessing research data quality.
• 📝 The gathered data is used for internal and external analysis, such as SWOT and Porter's Five Forces, to inform strategic decisions.
• 🏢 The example of the French Cafe illustrates how a business might conduct secondary research by accessing public databases and online sources.
• 📋 Secondary data is characterized by being readily available, quick to obtain, and low-cost, but it may not be directly targeted to specific needs.
• 🎯 Primary data is tailored to the organization's specific requirements and can provide more targeted insights, though it is more time-consuming and costly.
• 🤔 Organizations must decide whether secondary data is sufficient or if they need the more targeted information that primary research offers.
• 💡 A combination of secondary and primary research is often optimal, with secondary research typically conducted first to ensure resourceful spending.
• 📖 For further learning, the video suggests additional resources, including books on market research, statistics, and marketing principles.

Q & A

What are the two main types of research discussed in the script?

The two main types of research discussed in the script are primary and secondary research.

What is the purpose of conducting research during strategic planning?

The purpose of conducting research during strategic planning is to gather information that aids in understanding the business environment, identifying opportunities and threats, and making informed strategic decisions.

What is the difference between primary and secondary data?

Secondary data is information that has already been collected for another purpose and is readily available. Primary data, on the other hand, is collected specifically for the research at hand and is tailored to the organization's specific needs.

What are some examples of secondary data sources mentioned in the script?

Examples of secondary data sources mentioned include business databases, commercial industry databases, competitors' websites, social media sites, online search results, and customer reviews on platforms like TripAdvisor.

What are some methods of collecting primary data as described in the script?

Methods of collecting primary data described in the script include designing questionnaires, conducting focus group interviews, setting up specific goals in Google Analytics, tracking social media interactions, and observing customer behavior both online and in-store.

Why is validity an important term when checking the quality of research data?

Validity is important because it refers to the accuracy and truthfulness of the data, ensuring that the data collected actually measures what it is intended to measure.

Why is reliability significant in research data quality?

Reliability is significant because it ensures that the data collected is consistent and can be replicated, providing dependable results that are not influenced by random errors.

What is a SWOT analysis and how does it fit into the strategic planning process?

A SWOT analysis is a strategic planning tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning. It helps in summarizing research findings and informing strategic decisions.

What is the TOWS matrix and how does it relate to strategic options?

The TOWS matrix is a strategic planning tool that builds on the SWOT analysis. It helps in identifying strategic options by considering how to leverage strengths and opportunities, mitigate weaknesses, and counter threats.

Why is it recommended to conduct secondary research before primary research?

Secondary research is recommended before primary research to ensure that resources are spent wisely. It allows organizations to gather existing information quickly and at a lower cost before investing time and money into more targeted primary research.

What are the advantages and disadvantages of secondary data mentioned in the script?

The advantages of secondary data are that it is relatively quick, easy, and low cost to obtain. The disadvantages are that it is not targeted directly at specific information needs.

What are the advantages and disadvantages of primary data according to the script?

The advantages of primary data are that it is targeted specifically to individual needs. The disadvantages are that it is relatively time-consuming, complex to carry out, and therefore also relatively costly.

Outlines

00:00

📊 Strategic Planning and Research Types

This paragraph introduces the concept of strategic planning and the importance of conducting various types of research and analysis. Marketers discuss the collection of secondary and primary data, which are integral to this process. The learning goals for the video are outlined, focusing on establishing a connection between these research types and the broader strategic planning process. It also aims to provide an understanding of what primary and secondary data are, their respective pros and cons, and how to conduct them. The paragraph sets the stage for a detailed discussion on how organizations use qualitative and quantitative research, surveys, and analysis techniques like validity and reliability checks to inform their strategic decisions. It introduces the example of 'The French Cafe,' which is looking to understand its competitive landscape better.

05:00

🔍 Exploring Secondary and Primary Research

The second paragraph delves into the specifics of secondary and primary research, using 'The French Cafe' as a case study. Secondary research, also known as desk research, involves gathering existing data that wasn't originally created for the cafe's needs. This can include business databases, financial accounts, competitor websites, social media, and customer reviews on platforms like TripAdvisor. The benefits of secondary data are its quick, easy, and low-cost nature, but it may not be directly targeted to the cafe's specific needs. On the other hand, primary research is conducted specifically for the cafe's needs, such as through questionnaires, focus groups, Google Analytics, and customer observations. While primary data is more targeted and beneficial, it is also more time-consuming, complex, and costly. The paragraph concludes by discussing the decision-making process for conducting primary research, emphasizing the importance of resource allocation and the potential need for a combination of both research types for optimal strategic planning.

Keywords

💡Strategic Planning

Strategic planning is a process that organizations use to set goals, develop strategies, and determine tactics to achieve those goals. It involves conducting various types of research and analysis to inform decision-making. In the video, strategic planning is the overarching process that incorporates primary and secondary research to help the French Cafe make informed decisions about its direction amidst increasing competition.

💡Secondary Research

Secondary research refers to the analysis of existing data that has been collected by others for different purposes. It is a cost-effective way to gather information quickly. In the script, the French Cafe uses secondary research to access business databases, visit competitors' websites, and review customer feedback on platforms like TripAdvisor to understand the competitive landscape.

💡Primary Research

Primary research is data collected specifically for the purpose at hand, often tailored to the needs of the researcher. It can be more time-consuming and costly but provides targeted insights. The video gives examples of primary research such as designing questionnaires, conducting focus groups, and tracking customer behavior on the French Cafe's website to gather specific insights about its customers and operations.

💡Qualitative Research

Qualitative research focuses on understanding the underlying reasons, opinions, and motivations of consumers. It often involves non-numeric data and is used to gain deep insights. The video mentions qualitative research as a type of analysis that could be used by the French Cafe to understand customer perceptions and experiences, which could inform their strategic decisions.

💡Quantitative Research

Quantitative research involves collecting data that can be measured and analyzed numerically. It provides statistical insights that can be used to make objective decisions. The video suggests that the French Cafe might use quantitative research to analyze financial results and customer engagement metrics to support their strategic planning.

💡Validity

Validity in research refers to the accuracy and truthfulness of the data collected. Ensuring validity means the data genuinely reflects the research question. In the context of the video, the French Cafe would need to ensure the data gathered, both primary and secondary, is valid to make reliable strategic decisions.

💡Reliability

Reliability in research indicates the consistency and stability of the data. Reliable data can be consistently replicated under the same conditions. The video script implies that the French Cafe must critically apply the concept of reliability to ensure the research data they collect is consistent and dependable.

💡Internal Analysis

Internal analysis involves examining an organization's own operations, such as financial accounts, business models, and core competencies. The video mentions internal analysis as a part of the strategic planning process where the French Cafe might review its own financial health and operational strengths.

💡External Analysis

External analysis looks at factors outside the organization that could impact its operations, such as market trends, competition, and regulatory changes. The video describes how the French Cafe conducts external analysis through competitor analysis and by examining customer reviews to understand the external environment.

💡SWOT Analysis

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It is a strategic planning tool used to identify and evaluate these aspects within an organization. In the script, the French Cafe might summarize its research in a SWOT analysis to identify strategic options and make informed decisions about its direction.

💡Towers Model

The Towers Model, also known as the TOWS Matrix, is a strategic planning tool that helps organizations align their strengths and weaknesses with opportunities and threats. The video suggests using the Towers Model after a SWOT analysis to identify strategic options for the French Cafe to choose from.

Highlights

Organizations conduct various research and analysis during strategic planning.

Marketers discuss collecting both secondary and primary data.

The video aims to connect primary and secondary research with strategic planning.

Understanding the difference between primary and secondary data is crucial.

Primary data is collected specifically for a particular purpose.

Secondary data is pre-existing and not originally collected for the current need.

Strategic planning involves qualitative and quantitative research.

Validity and reliability are critical terms for assessing research data quality.

Internal analysis includes审视公司账户、商业模式和核心竞争力等.

External analysis may involve PEST, Porter's Five Forces, and competitor analysis.

SWOT analysis is used to summarize research findings.

The TOWS matrix helps identify strategic options.

The French Cafe example illustrates the application of research in a real-world scenario.

Secondary research includes accessing business databases and online platforms for competitor information.

Primary research involves designing questionnaires, conducting interviews, and observing customer behavior.

Secondary data is quick, easy, and low-cost to obtain but may not be directly targeted.

Primary data is targeted but can be time-consuming, complex, and costly.

A combination of secondary and primary research is often optimal if resources allow.

Marketers recommend conducting secondary research before primary to allocate resources wisely.

The video concludes with recommendations for further learning in marketing and strategic planning.

Transcripts

[Music]

when organizations enter into strategic

planning they conduct different types of

relevant research and analysis as part

of this process

marketers talk about collecting

secondary and primary data let us list

the learning goals for this video

firstly the goal is to establish a

connection between primary and secondary

research and the rest of the research

analysis and strategic planning process

secondly the goal is to gain an

understanding of what primary and

secondary data is the pros and cons of

each and how we can conduct these two

types of research so let us begin when

organizations enter into strategic

planning they conduct different types of

research and analysis they might conduct

both secondary and primary research they

will consider using qualitative and or

quantitative research and different

survey types they would check the

quality of their research data by

critically applying the terms validity

and reliability the gathered data might

be used in a process of conducting

different analysis internal analysis

which could include a look at the

company accounts current business model

core competencies and others and

external analysis such as pest Porter's

five forces competitor analysis and

others and ultimately they might

summarize all their research in a SWOT

analysis this might be followed by a

towers model in order to identify

several strategic options to choose

between this will enable them to make

informed strategic decisions about which

direction to take primary and secondary

research is what we will address in this

video so what is primary and secondary

research and how could we go about

collecting these two

of data let us use an example this Cafe

is located in a large city close to a

busy high street it is called the French

cafe and it specializes in serving high

quality cakes and desserts

the French Cafe is experiencing

increasing competition from both

existing competitors and new cafes

opening up all around the area motivated

by his curiosity to find out more about

the competitors the owner of the French

cafe has decided to do some research so

what kind of information could the

French cafe collect they could access

business databases to find details about

each competitor such as their financial

results and some commercial industry

databases open for more detailed company

information at a fee to compare with

their own internal situation they could

gather information from their own

financial accounts they could visit the

competitors websites social media sites

and perform online searches to collect

information about the different

competitors online presence and

communication style they could also

access TripAdvisor or similar platforms

to find out how customers review the

competitors we call this type of

research secondary or desk research so

let us take a look at the

characteristics of secondary data

secondary data has not been created or

published for the benefit of the French

cafes competitor analysis it has

originally been created for a general

purpose aimed at a variety of people or

businesses secondary data is already out

there just waiting to be found and

explored the benefits of secondary data

is that it is usually relatively quick

easy and low cost to obtain however the

disadvantage of secondary data is that

the information is not targeted directly

at French cake specific information

needs

now let us imagine that French cakes

would like to obtain some information

which is targeted specifically at their

own information needs they could design

a suitable questionnaire and interview

customers they could invite customers

for a focus group interview they could

set up specific goals in their Google

Analytics to track on their website how

users interact with their online booking

feature and they could track social

media interactions they could also carry

out other observations of customers

behavior both on the website and in the

cafe this type of research is called

primary or field research so let us take

a look at what characterizes primary

data primary data is generated

specifically for us and for our specific

purpose primary data is not already out

there in the form that we require it we

could argue that the online behavioral

data already exists but French cake's is

now setting up specific filters to track

and show an exact behavior the benefit

of primary data is clearly that it is

targeted specifically to our individual

needs however the disadvantage is that

it is relatively time consuming complex

to carry out and therefore also

relatively costly so what is best

secondary or primary research in our

example French cakes would have to

decide whether or not the secondary

information they could gather would be

sufficient to make decisions upon or

whether they're in need of more targeted

information a need for targeted

information would create the need for

conducting primary research in that case

French cakes would have to consider the

different kinds of information they

could collect by a primary research and

whether or not they have both the time

the money the people and the skills

required to carry out relevant primary

research no two cases are the same but

if time money and competencies allow a

combination of secondary research and

carefully designed primary research is

often the optimal solution as marketers

we would usually recommend conducting

the secondary research first and primary

second this is to make sure we spend our

resources wisely we have now established

a connection with the rest of the

research analysis and strategic planning

process and subsequently we have used an

example to illustrate what primary and

secondary research is we have

highlighted the pros and cons of each

and how we can conduct these two types

of research if you want to learn more

about research analysis and strategic

planning or about other marketing

related subjects then I suggest that you

watch additional videos on this channel

to further support and substantiate your

learning I recommend that you read

market research and statistics by 4-band

others as well as principles and

practice of marketing by Java and if

you're able to read Danish international

markets viewing via all is Anacin and

others my name is Tina Wade thank you

for watching