How to get started with market research
20 minutes
Back to Blog
Minimum Viable Product (MVP)
What are the main advantages of secondary market research
Nov 5, 2024
10 minutes
Contents
Go-to-market speed can be a critical success factor in a highly competitive environment where every entrepreneur is following trends and trying to actively implement them. According to the IT industry report 2024, 43% IT professionals attribute difficulties in working with new technologies to lack of time. Having data ready to analyse can provide startup owners in UK the following opportunities:
- Flexibility for making quick changes to MVP;
- Implementing the functionality the market needs;
- Identifying gaps for further improvement and refresher training in the team's processes and skills.
While building a startup, every pound has value. Therefore, it is important for an entrepreneur to utilise free tools and ways to gain valuable data for future product development. Read this article to learn about the key advantages of secondary market research.
What is secondary market research
While conducting a secondary market research process of gathering existing data from already published reports, studies, and other resources – saving you time and cash. So, let’s break down why it’s crucial and how you can tap into it without reinventing the wheel.
Can secondary market research replace communication with the real target audience? In most cases, no, because it only gives a general picture and does not provide an in-depth understanding of the needs and objectives that your product launch can meet. But it’s crucial to build a hypothesis and gradually narrow it down in search of a competitive product-market fit. It’s better to combine both types of market research, starting with an analysis of global trends and then trying to understand your customers' needs.
How to use advantages of secondary market research
Time-Saving
Secondary market research is practically plug and play. Need an industry overview? You can find out the key trends in your chosen industry by searching government databases such as the Office for National Statistics (ONS). With data readily available, secondary research is fast – giving you insights while you're still fine-tuning your elevator pitch or MVP functionality.
In fact, this is the first tool to test your idea. Let's say you want to create a marketplace that sells only products that bloggers and other users have already tried. In our last article dedicated to marketplaces trends, we mentioned the social media sharing feature. Here is the direct improvement, that brings your solution in line with market requirements.
Conversely, reading research can help you develop an idea from scratch. Local research shows that 84% of UK consumers trust customer reviews when making a purchase. Imagine if your marketplace was review-driven, showing first the items that other users have rated the highest or that have already been approved by trusted influencers.
Cost-Effectiveness
Unlike primary research, which can involve hiring survey companies, focus groups or data analysis teams, secondary research relies on data that's often low-cost or even free. For a pre-seed startup, saving on research costs means having more capital for product development, marketing or even extra bonuses for the team.
Broad Scope and Perspective
Because secondary data often comes from reputable sources or large-scale studies, it provides a complete picture of your industry. Imagine the amount of time and sources it takes to conduct a survey that reaches thousands of people. With secondary research, the data from these studies is already waiting for you, giving you access to a wide range of insights that would otherwise be difficult to gather independently.
Benchmarking Your Business Against the Competition
Secondary research allows you to get a sense of where your competitors stand without crossing any ethical boundaries. By studying competitor reports, consumer reviews or case studies, you'll understand the landscape of your market and identify unique angles for your product or service.
Ready Access to Trends and Industry Insights
Disadvantages of Secondary Market Research
While secondary market research is a powerful tool, it has some limitations. On the one hand, the information gathered will most likely not be specific to the company and its needs. On the other hand, the data on the internet can be months or years out of date, so the circumstances in which this information can be used will vary.
Here are some disadvantages of secondary market research you may face while building product concept:
- Outdated data – some unproven secondary data may mislead you if market conditions have changed;
- Lack of specificity – secondary data is rarely truly a perfect fit for your niche market or addresses all of your specific questions;
- Reliability of sources – the quality of this type of market research depends on the credibility of the original source, which can be variable.
One more thing we'd like to add – don't just focus on industry data when building your startup. Secondary market research can reveal a lot of insights and best practices for the following directions:
- Choice of technology stack;
- Defining team processes and interactions;
- Human resource management;
- Developing effective interfaces.
Being an experienced tech partner for young entrepreneurs we’ve published a trend report dedicated to UI/UX design, that has already covered more than 52,000 reads.
UX/UI-trends in 2024
We will explore trends applicable to ordinary landing pages and simple image websites, as well as to online resources with more functionality, such as online stores, banking services, and other platforms with complex infrastructures or mobile applications.
Have a look at what else we can do for you. Ask your questions at the consultation
Secondary Market Research Techniques
As with primary market research, you can't do without specialised techniques and methods to make the available data more structured and applicable to the specifics of your business. All relevant services for UK entrepreneurs are listed in this article.
Here we’ll go deep into covering possible use cases of most popular methods.
Desk Research
This is often the first step and involves simple internet searches, online databases or library resources. Whether it's searching government databases or reading trade publications, desk research is accessible and straightforward.
✍ Use Case. A UK-based startup specialising in eco-friendly skincare products wants to research consumer attitudes towards sustainable packaging. A quick scan of trade publications could reveal trends in sustainable packaging and materials, helping the founders to see if their unique angle on eco-friendly products matches consumer interest.
Data Analysis Tools and Reports
Paid reports from platforms like Mintel, Statista, and Euromonitor offer comprehensive data that’s neatly organised and easy to interpret. While these might cost a bit, they’re highly reliable and detailed enough to base strategic decisions on.
✍ Example. If a startup wants a complete overview of current trends in fitness apps, wearable tech and digital health, its owner can invest in a Mintel report to understand market size, growth forecasts and leading competitors. This will show that products focusing on mental health are on the rise.
Literature Reviews
For specific industries such as healthcare, academic journals and white papers provide detailed, evidence-based data. Sites such as Google Scholar or the British Library are great starting points for finding relevant studies.
✍ Example. For a health-focused app targeting diabetes management, the startup team should find academic studies and clinical data on the impact of digital tools on diabetes self-management. Reviewing this material will provide insight into the key challenges faced by people with diabetes, such as adherence to lifestyle changes, and enable the startup to design features that directly support these needs.
Media and Public Sources
Publicly available information such as news articles, press releases, and online consumer reviews can provide qualitative insights into how people perceive certain brands, products, or trends.
✍ Example. A food delivery startup with a niche offering (e.g. high-protein meals for athletes) monitors news articles and customer reviews of leading competitors such as GoPuff and Uber Eats. They gather feedback on common pain points, such as long delivery times or limited healthy options, by combing through online reviews on social media. This insight helps them identify where they can differentiate – perhaps by focusing on fast delivery and high-quality, nutritional options for fitness enthusiasts.
Key Conditions and Criterias for Secondary Market Research
In the case of secondary market research, you can only reap all the benefits if you pay attention to two main factors:
- Data quality and validity;
- The relevance of the information gathered to your business objectives.
The following criterias will help you properly evaluate reports and other available sources of information to get all advantages of secondary market research.
Define Clear Research Objectives
Start by outlining the specific questions you need answered. This may include:
- Identifying customer demographics;
- Evaluating competitor pricing;
- Understanding industry trends, etc.
And don't forget to focus on the relevance of the data. Prioritise reports that are specific to your target audience or geographic region. Relevance ensures that your decisions are aligned with real market demand.
Credible Sources
Choose established and reputable sources to avoid outdated or biased information. Government publications, industry reports, academic journals and major data providers offer the most reliable data. Use a variety of data sources to get a broad perspective. This includes combining quantitative (e.g. industry statistics) and qualitative data (e.g. customer reviews).
Be aware that such data can easily become outdated. Be aware of publication dates, especially in fast-moving sectors such as technology, consumer behaviour or retail.
Data Justifiability
Confirm findings by cross-checking with multiple sources. This reduces reliance on potentially biassed data from a single source and provides a rounded picture of the market.
Ethical Data Usage
Adhere to ethical and legal guidelines when handling data, especially when it involves personal information. In the UK, this means adhering to GDPR standards, ensuring privacy and obtaining consent where necessary.
Actionable Insights
Ensure that the insights you gain from secondary research can be directly applied to your decision making. If insights seem too general or unrelated to your business model, they may need further refinement.
Let’s make a conclusion. The main advantages of secondary research is that it’s fast, low cost and easy to find. You can do secondary research yourself using a computer and internet connection. Disadvantages of secondary research based on the fact it provides broader results than primary research which offers more detailed, targeted data specific to research objectives.
FAQ
What is secondary market research?
Secondary market research uses data and information that others have already collected, saving time and resources.
How does secondary research save time and money?
Secondary research is already available from a variety of sources, eliminating the need for expensive primary research. It also provides faster access to information as the data is ready for analysis.
Are there limitations to secondary market research?
Yes, secondary research can be outdated, not specific enough for niche markets, and its quality depends on the credibility of the original source.
Can secondary research be used in combination with primary research?
Absolutely! Many companies start with secondary research to gain general insights and then use primary research to get specific answers tailored to their business needs.
You may also like:
