Question

1 - Explain these two terms: Secondary data and Primary data

Then give two advantages and disadvantages of each term

(We are in marketing field)

Answer 1

Marketing reaserch is process of gathering, analyzing, and reporting of data relating to any problem in the marketing field. Entire process is data related activities.

For solving any marketing problem adequate, relaible, timely data are necessary .This data helps to understand what customers are buying, when they are buying.

Information developed from data can be used for taking decisions or formulating strategies. Marketing Research uses two type of Data:

Primary Data and Secondary Data

Primary Data: Primary data are original information and are treated as the basic input for analyzing and solving any problem related to marketing activities.

For example if company want to solve the problem related to distribution activities whatever data collected in light of this problem is known as primary data.

Success of marketing depends upon quality and quantity of primary data.

Advantages of Primary data:

Specific: Collecting your own data allows you the freedom to address issues specific to your business, or research aim in this case, the data collected is exactly what the researcher wants and needs.

For example, when doing market research for a product, the data collected will be specifically for the product in question.

Upto date information: The data collected from primary sources are up-to-date, unlike that of the secondary sources. It collects data in real-time and does not take information from stale and outdated sources.

For example: when the population of a community is something that continues to fluctuate as people die and children are born. Going by the National Census, one may not get accurate results of the population, and can only settle for estimates.

Disadvantages of Primary data:

Expensive: Data collection process for primary data is very expensive. No matter how little the reasearch is , at least one professional reasearcher will need to be employed to carry out the research. Also, reasech process itself may cost some amount of money.

Time Consuming: Going from the starting point of making the decision to perform the research, to the point of generating data, the time is much longer compared to the time it takes to acquire secondary data. Each stage of the primary data collection process requires much time for execution.

Secondary Data: Secondary data are published data. They are readily available. They can be used directly without any processing. This data is collected rather than generated . it is known as recorded data.For collecting secondary data, there is no need for employing qualified, experience, and capable research officer. Such data can be easily collected.

Advantages of Secondary Data:

1. Economical: Secondary data is cost-efficient as you don’t have to spend a lot of money to conduct reserved.

2. Time saving:  Reasearchers don't have to spend time sorting the data because it is usually available in sorted form.   

Disadvantages of secondary data:

Accuracy: The accuracy of the data cannot be ensured. inaccurate daa might the impact the outcome of the research

Not useful : Sometimes attibutes and values collected in secondary data don't match with attibutes and values that you want to calcuate. in such scenarios, secondary data is not useful for research

Conclusion: As we have seen in this article , both primary and secondary research have their own set of advanatges and disdavantages. A primary research is more precise and the quality of work is also well up to the mark, but then it can be very costly and time consuming.on the other hand secondary reasearch can be very economical and the process of data collection is less hectic

So , before selecting between primary and secondary research , it is important that the researchers knows his requirements, cost of research to choose best research method for his project