Types of research

Market research is the collection of information or data to better understand what is happening in the market place. A firm's marketing department needs to know about economic trends, as well as consumers' views. Based on this information, they can put together a marketing plan, which will meet their own needs as well as those of their consumers.

There are two general types of research:

• Primary or field research
• Secondary or desk research

Primary or field research

Primary research provides new data for a specific purpose

Obtaining new data for a specific purpose.

The marketing department of a firm or a specialist research organisation can provide this. Typically, the data is gathered in face-to-face interviews, by telephone, by post or via the internet, using questionnaires. This is called a survey. Sometimes potential consumers are asked to test products, and their responses are recorded.

Field research [Field research: Gathering primary or new data - questionnaires, surveys etc. ] has the advantage that the firm itself has control over the whole process. The disadvantages are that it takes longer and is more expensive.

Secondary or desk research

This is the use of existing data that has already been collected.

It can be anything from a company's own sales statistics to Department of Trade and Industry reports. Other secondary sources of information include journals, company reports, government statistics, and surveys published by research organisations. Traditionally, these have been paper-based, but more and more information is now available on CD-ROM or on-line through the Internet.

Desk research [Desk research: Gathering secondary or existing data - internet, newspapers etc. ] has the advantages of being cheaper and quicker than field research. The disadvantages are not knowing if the findings are accurate, or how relevant they will be to your product.