Our goal is to help you understand and master the essential concepts and methods that are unavoidable in the startup ecosystem. Following our article on the proper use and pitfalls of the Lean Startup Methodology, this time we have gathered our insights on the importance of secondary market research reports and how to access them, closely related to our first post on finding Problem-Solution Fit.
Why are secondary market research reports necessary?
Many may wonder why secondary market research reports are necessary if we can assess the future market and customer needs of our startup ourselves. However, before conducting our primary market research, it is advisable to spend time analyzing secondary research. But why?
Secondary market research involves collecting data recorded and published by others for different research purposes. It generally provides a broader picture and does not focus on the specific problem of the startup but contributes to the formation of comprehensive market knowledge. Later, it is crucial to conduct more precise primary market research, which involves gathering original, previously unknown, and unpublished data focused on our own research objectives.
Secondary research offers numerous advantages, such as being less costly since the data can even be found for free. Additionally, this data is already collected and processed by professionals, saving a lot of time and allowing us to work with reliable data, as the companies conducting the research are experts in their fields.
Market research is a very important step in building a successful business, as the analysis of data collected during the research allows startups to better understand their target market and make better decisions in line with customer needs. Market research provides feedback that helps entrepreneurs during product development, saving time and money by avoiding mistakes. It is also a useful tool in pricing, as it helps estimate customers’ purchasing power and willingness to pay. Moreover, market research serves as evidence for investors that it is worthwhile to invest in the given startup.
What factors can be assessed with secondary market research?
To understand the characteristics of the selected market:
Information on the local environment, such as political and legal factors
Availability of human and other resources
Information about competitors, including their pricing, marketing, and even sales data
To understand the characteristics of the target market:
Demographic data: age, gender, ethnicity, income
Past and latest consumer trends
Characteristics of secondary market research:
How to obtain secondary market reports?
Secondary reports can be collected both internally and externally. Since startups have less historical data, they need to rely more on external sources. Traditional secondary sources can be found on the internet: publications from professional organizations, competitors, and other relevant companies. Google is your best friend when it comes to collecting secondary market reports. With a search, you can find a wealth of general information that will guide you toward more specific data. In this case, the “less is more” principle does not apply.
Look beyond the data! Although the data you find may fit your startup, they do not cover the entire problem and are not specific enough. Therefore, always view the data in a broader perspective!
Start your market research with public data! In most countries, governments publish free statistical data accessible to anyone. In Hungary, as a government agency, the Central Statistical Office (KSH) publishes national research on its website, providing a general picture of the habits of Hungarian people. In the EU, similar statistical data can be found on the Eurostat website. Additionally, websites of industry associations, such as the annual surveys by Startup Hungary, which are also freely accessible, or patent databases and university research databases can serve as public sources.
Next, consider examining paid services! These include various research institutes whose reports are generally not freely available, but you may find some free publications on their websites. Such research companies include Nielsen, GfK, Gartner, Forrester. Additionally, traditional methods such as library memberships or following media can provide freely accessible data, for example, from company websites where they often share reports themselves. For deeper market reports, use websites like Statista, Google Dataset Search, Our World in Data vagy a FinChat. Since these providers do not offer free access and their pricing is not particularly “startup-friendly,” it might be a good idea to team up with other startup founders and subscribe together.
Always analyze the data from market research reports collected from different sources through comparison and combination to fully understand the obtained results! Secondary research can be expanded or even repeated if further information is needed. Remember, after secondary market research, conducting your own primary research is essential for a truly comprehensive survey!
Additionally, one of the most important steps is verifying the credibility of the sources. Today, almost anything is available on the internet, but there is no guarantee that all information and data are accurate. The simplest method is to cross-reference information from different types of sources and other websites.
Sources for obtaining free market research reports
- Numerous online platforms and websites offer free reports that can be used for market research. Among the most credible are Statista, Pew Research, ProQuest etc.
- Trendwatching : For accurate trend forecasting, it issues monthly briefings on emerging consumer trends worldwide based on data collected from a global network of hundreds of individual observers. A subscription version is also available.
- Mintel Reports: A database of consumer and market research reports, covering the UK, European, and international markets.
- D&B Hoovers: Deals with British and international market, industry, and company information.
- Gartner: Specifically publishes business and economic studies, and its industry and sales reports are particularly useful for planning.
- Similar to Gartner, McKinsey can be an industry source.
- Google Trends: Allows searching for specific terms and shows how many people searched for them during a particular period in a specific country/area. This can be very useful for checking trends and identifying popular topics.
- ChatGPT: As an initial step, it can be excellent for listing organizations. However, remember to always verify the sources provided.
- TÁRKI: the best source for social research in Hungary, e.g. Háztartás Monitor, which is excellent for identifying consumer trends.
PS: If you need help turning data into clear, effective communication, check out our CMO Partner service.
