1. What Is Secondary Market Research in Business?
Secondary market research in business is the process of gathering and analysing data that has already been collected by others. Instead of conducting original research, businesses use existing reports, studies, statistics, and publications to understand markets, customers, and competitors.
2. Sources of Secondary Market Research
Secondary data comes from various reliable sources, including:
- Government statistics (e.g., Office for National Statistics in the UK)
- Trade associations and industry reports
- Market research firms (Mintel, Statista, IBISWorld)
- Academic studies and journals
- News articles and business publications
- Online databases and whitepapers
- Internal company records (sales reports, customer data)
3. Examples of Secondary Market Research in Business
- A startup reviewing government data on consumer spending habits.
- A retail company using published industry reports to identify trends.
- A restaurant analysing online food delivery statistics.
- A tech firm studying academic research on new innovations.
4. Advantages of Secondary Market Research
- Cost-effective – Often cheaper than conducting primary research.
- Time-saving – Information is readily available.
- Broad coverage – Provides large-scale insights across industries.
- Useful for trend analysis – Helps spot patterns over time.
- Supports decision-making – Gives background context before launching new projects.
5. Disadvantages of Secondary Market Research
- Lack of relevance – Data may not directly apply to your business.
- Outdated information – Reports may not reflect current market trends.
- Limited accuracy – Sources vary in reliability and quality.
- Not unique – Competitors may have access to the same data.
6. Primary vs Secondary Market Research
- Primary research: Data collected firsthand through surveys, interviews, focus groups, or experiments.
- Secondary research: Data collected by others and reused for analysis.
Most businesses use both methods for a complete picture.
7. When to Use Secondary Market Research
Secondary research is most useful when:
- Exploring new markets or industries
- Preparing for a product launch
- Understanding competitor activity
- Identifying customer demographics
- Supporting financial and investment decisions
8. How to Use Secondary Research Effectively
- Define your business questions clearly.
- Use multiple sources to cross-check reliability.
- Combine secondary data with primary research for accuracy.
- Keep track of publication dates to avoid outdated insights.
Frequently Asked Questions
1. What is secondary market research in business?
It’s the use of existing data, reports, and publications to study markets, customers, and competitors.
2. Is secondary research cheaper than primary research?
Yes, it is usually more affordable and faster to access.
3. Can secondary research be used for startups?
Yes, it’s a great way for startups to understand markets before spending money on surveys.
4. What’s an example of secondary research?
A business using government statistics to analyse regional spending patterns.
5. How reliable is secondary research?
It depends on the source. Reputable organisations provide high-quality data, but businesses should always verify information.
6. Should I only rely on secondary market research?
No, it should be combined with primary research for deeper and more specific insights.
Conclusion
To answer what is secondary market research in business—it’s the practice of using existing data to analyse markets, competitors, and customer behaviour. While cost-effective and quick, it works best when paired with primary research to make well-informed business decisions.