What is primary data and secondary data in marketing research?

Marketing research is a process of gathering, analyzing, and reporting of data relating to any problem in the marketing field. Entire process involves the data-related activities. Data are the raw information. Webster’s dictionary defines data as: “Facts, statistics, or information either historical or derived by calculation, or experimentation.”

For solving any marketing problem, adequate, reliable, relevant and timely data are necessary. Major part of research budget, efforts, and time is occupied in collecting data. Data, being raw information, cannot provide clear indication or implication. They are to analyzed and interpreted to get meaningful implication. Only information developed from data can be used for taking decisions or formulating strategies. Marketing research uses two types of data – primary data and secondary data. Both data have their uses and limitations. Also, different methods are used for collecting both types of data.

Primary Data:

Primary data are those details, which are directly and completely related with the problem on hand. Primary data are original information and are treated as the basic input for analyzing and solving any problem related to marketing activities.

They are deliberately, rigorously, and consciously collected from the relevant respondents to generate original information that can be used directly to solve the marketing problem. They are collected as per company’s plan. For example, if a company wants to solve the problem related to distribution activities, whatever data collected in light of this problem can be referred as primary data.

Primary data are collected from relevant respondents. They are not readily available, their collection and analysis need rigorous efforts. Success of marketing research depends upon quality and quantity of primary data. In fact, no research project can be completed without primary data.

Characteristics of Primary Data:

Primary data constitute the basis information to solve the marketing problems.

With reference to primary data, it can be said that:

1. Primary data are original data.

2. Primary data are expensive.

3. Collection of primary data takes considerable time and efforts.

4. They are collected with reference to problem on hand.

5. They are collected deliberately from relevant respondents.

6. Specific methods (like survey methods, observation methods, experimental method, etc.) and tools (like printed forms, questionnaire, camera, etc.) are used for collecting primary data.

7. They constitute a basic input in the research project.

8. They are required be furnished, processed, or analyzed before they are used.

Sources of Primary Data:

Primary data are the basic input in solving problem. They are expensive, time consuming, and they need more efforts. Sources of primary data depend upon type of problem. They are collected by using specific methods and tools.

Most commonly used sources of primary data may include:

1. Consumers

2. Retailers

3. Wholesalers

4. Dealers/agents

5. Suppliers

6. Employees of company

7. Salesmen

8. Trade associations

9. Professional experts

10. Top-level management

11. Competitors

12. Other business firms

13. Service providers like banks, transporters, insurance, etc.

Secondary Data:

Secondary data, on the other hand, are published data. They are readily available. They can be used directly without processing or analysis. They are collected rather than generated. Secondary data are those details which have been collected for the purpose other than specific research problem.

They are also known as the recorded data. They are published data. They have been collected by other people for their contemporary problems. Sometimes, they are not useful. They are supplementary to primary data. They support primary data. Extent to which secondary data are used for marketing research depends upon suitability, accuracy, and time.

Secondary data consist of the information that already exists somewhere, having been collected for other purposes. Hardly problem can be solved only by secondary data. They are used for exploring, defining, and understanding problems, which can be solved by primary data. For collecting secondary data, there is no need for employing qualified, experience, and capable research officer. Similarly, special methods and tools are not used. Such data can be easily collected.

Characteristics of Secondary Data:

Following are the key characteristics of secondary data:

1. Secondary data are published data, not original data, for the research on the hand.

2. They give the latest information

3. They can be easily collected from various internal and external sources.

4. They are relatively cheaper; they need less efforts, time, and money.

5. They have been collected by other people for their own problems and situation in the past.

6. They are used as a supplementary to primary data. Mostly, they are used for defining and understanding problems.

7. The use of secondary data is optional. Research can be conducted even without the use of this type of data.

8. They can be used without processing; no need to analyze them before they are used. They can be used directly.

9. Relevance, accuracy, and timing are the main problems related to secondary data.

Sources of Secondary Data:

Secondary data can be collected from various sources. Mostly they are collected from published sources.

There are two types of sources:

1. Internal Sources

2. External Sources

Internal Sources:

i. Sales and purchase records

ii. Customers’ complaint notes

iii. Sales orders

iv. Salesmen’s reports

v. Past research work of company

vi. Other literature and publication work of company

vii. Information of the past special events, etc.

External Sources:

i. Government publication and reports

ii. Advertising media – daily newspapers, magazines and periodicals, radio, television, etc.

iii. Advertising agencies and marketing consultants

iv. Universities and colleges

v. Commercial and general libraries

vi. Marketing research firms and consultants

vii. Trade associations and technical and professional groups

viii. Internet surfing

ix. Trade fairs and exhibitions

x. Consumer rating agencies, etc.