Understanding Primary and Secondary Market Research
Whether you’re starting a business, launching a new product, or looking to grow, one of the smartest moves you can make is getting to know your market. That’s where market research comes in.
But not all research is the same. There are two key types every entrepreneur should understand: primary and secondary market research. Both offer unique benefits—and when used together, they can shape smarter strategies and better decisions for your business.
Primary Market Research: Insights Straight From Your Audience
What is it?
Primary research involves gathering new, first-hand data directly from your ideal customers. It’s custom-made information collected to answer specific questions about your business, product, or market.
Examples of Primary Research Methods:
- Online or in-person surveys
- One-on-one interviews
- Small-group focus sessions
- Product testing or feedback trials
- Observations of customer behavior
Use primary research when you need to:
- Validate a business idea
- Understand customer preferences or pain points
- Test product features or price points
- Explore new target markets
- Improve your user experience
Local Example:
Let’s say you’re starting a new Saskatoon-based subscription box service for wellness products. You create an online survey targeting young professionals to learn how often they purchase self-care items and what would make a subscription worthwhile. Their answers help you shape your pricing, packaging, and product choices.
Secondary Market Research: Information That Already Exists
What is it?
Secondary research involves using existing data that has already been collected and published by others. It gives you an overview of your industry, market trends, and potential opportunities—without starting from scratch.
Sources of Secondary Research Include:
- Government data (like Statistics Canada)
- Industry reports (like from Innovation Saskatchewan or Saskatchewan Chamber of Commerce)
- Academic studies and trade publications
- Competitor websites, reviews, and social media
- Online databases and business libraries
Use secondary research to:
- Understand your industry and market trends
- Estimate market size and growth potential
- Identify competitors and best practices
- Back up your business plan or funding proposal
Local Example:
You’re thinking of opening a pet grooming business in Prince Albert. You review provincial pet ownership stats, city business directories, and regional trends in pet care. This helps you assess the demand and competition before spending time or money on branding.
Why You Should Use Both
While secondary research gives you the big picture, primary research fills in the blanks with specific, real-time insights. Using both gives you a well-rounded, evidence-based strategy.
A Simple Process:
- Start with secondary research to understand the broader landscape.
- Follow up with primary research to dig deeper into the needs, behaviours, and preferences of your actual customers.
This combo helps you confidently answer questions like:
- Is there enough demand for my business idea?
- Who exactly are my customers?
- What pricing and features would work best?
- What gaps exist in the market?
If you’re unsure how to interpret the data, we’ve got you covered. Our team can walk you through what the numbers mean, what trends to watch for, and how to apply it all to your unique goals.
Be sure to Book An Appointment and check out our Resources Page for more entrepreneurial nuggets!
