[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.