How different data sources drive market knowledge

Understanding your market is crucial for success in today’s ever-growing business world. While organizations of all sizes have always relied on comprehensive market knowledge to make informed decisions that drive strategic success, that knowledge looks a bit different today than it used to — and that’s because we have far more market data sources than ever before.

From primary research conducted directly with customers to secondary data analysis, third-party market research companies, and other sources, businesses have multiple avenues to gather valuable market insights. 

In this article, we’ll explore the different market sources available and how they contribute to building a robust knowledge base, helping businesses like yours develop effective strategies and maintain competitive advantages in their specific industries.

Defining market knowledge

Market knowledge is generally defined as the collective understanding of industry trends, consumer behavior, market size, and competitive dynamics within a specific market segment. It’s the foundation upon which successful business strategies are built, helping all kinds of businesses identify opportunities, assess risks, and make data-driven decisions.

More specifically, businesses leverage market knowledge to:

• Understand their target market better
• Track and analyze emerging trends
• Develop pricing strategies
• Identify potential leads and recurring customers
• Assess market saturation levels
• Monitor competitors
• Guide product and service development

Without market knowledge to leverage, businesses would not see any growth or success.

Understanding where market knowledge comes from

To conduct market research effectively, your teams must tap into the right information sources. Each market source type offers unique insights and perspectives, contributing differently to an organization’s understanding of its market. 

Here’s an overview of the four types of market sources available and how to obtain them:

Primary sources

Primary sources can be found through original research and direct consumer interactions. These are the sources that can provide direct information about your target market, offering arguably the most unique insights of all the sources available.

Primary sources are typically found in the following ways:

• Obtaining direct feedback from your target audience through testimonials and reviews
• Utilizing thorough online survey platforms, like SurveyMonkey, Typeform, or Qualtrics
• Curating email campaigns to reach existing customers and potential leads
• Implementing post-purchase feedback forms directly on your website
• Scheduling one-on-one interviews via video conferencing or in-person with willing customers
• Conducting focus Groups or partnering with market research facilities that provide focus group services
• Working with professional moderators found through research associations
• Reviewing your organization’s Sales data analysis by extracting consumer data from your CRM system and analyzing point-of-sale (POS) system data as well as reviewing e-commerce platform analytics
• Examining customer service interaction records and payment processing data
• Conducting field Research
• Analyzing the competition by visiting their locations and sites
• Attending industry trade shows and conferences
• Observing customer behavior in retail environments
• Conducting mystery shopping programs
• Monitoring online user behavior through heat mapping tools

Secondary sources

Secondary sources consist of previously compiled research and data, offering a broader view of market context, historical trends, competitor activity, and more. Secondary market sources are often more cost-effective and can provide you with a starting point to build the foundation of your knowledge base as they can give your teams access to readily available material — versus spending the time and money it would take to obtain primary source data.

Look for secondary sources in the following places:

• Industry Reports
• Research vendor platforms like IBISWorld, Forrester, or Gartner
• Downloads from industry associations’ member portals
• Subscriptions to financial institutions’ research services
• University library partnerships
• Academic Research through JSTOR or Google Scholar
• Subscriptions to academic journal databases
• University research departments
• Business school case studies, such as those through Harvard Business Review
• The Bureau of Labor Statistics (BLS) website and Census Bureau data portals
• Small Business Administration resources
• Federal Reserve Economic Data (FRED)
• State and local government databases
• Trade Publications, including digital trade journal archives and trade publication newsletters
• Subscriptions to industry-specific magazines
• Industry news websites

Third-party sources

Third-party sources typically include specialized market research companies and professional research organizations. While the term third party may seem like it encompasses outdated information, the opposite is true. This type of market research can provide unbiased insights into customer demographics, competitor analysis, and an unbiased perspective of broader market trends that can contribute to your marketing strategies, product development, and broader market trends.

You can find third-party market sources in these places:

• Market research firms like Nielsen or Euromonitor that sell market insights
• Global firms like Nielsen, Kantar, or IRI
• Specialized industry research providers
• Syndicated research platforms
• Local market research agencies
• Online research marketplaces
• Analytics Companies
• Subscription services like Tableau or Power BI
• Partner with data analytics firms
• Social media analytics platforms
• Web analytics services
• Consulting consulting companies like McKinsey, Bain, or BCG
• Partner with local business advisors or industry-specific consultants
• Consulting firm webinars and events
• Research Databases and data services
• Subscribe to Bloomberg Terminal

Open sources

Open sources provide publicly available information that can be accessed without significant cost or much restriction. These sources typically offer free access to a wide range of readily available data, from government to non-profit, covering a diverse spectrum of market insights like economic indicators, industry trends, consumer behavior, customer demographics, and more. Open-source market research is unique in that it enables a holistic analysis of your target market from research you can trust.

If you’re interested in open-source research, here’s how to find it:

• Social media platforms like LinkedIn, Twitter, and Facebook
• Social listening tools like Hootsuite or Sprout Social
• By tracking industry hashtags and discussions
• Joining professional groups and forums
• Following industry leaders and influencers
• Following news media groups and business news websites
• Subscribing to industry news aggregators
• Monitoring RSS feeds
• Accessing digital news archives
• Public records
• Accessing patent and trademark databases
• Using government open data portals
• Accessing public company annual reports
• Monitoring regulatory agency websites
• Participating in online discussion forums, including Quora and Reddit industry communities and LinkedIn discussion groups

How each market source can affect your market knowledge

Each type of market source can contribute uniquely to your research and overall knowledge base. However, depending on their origins, they’ll also affect your research and decision-making.

Here’s an overview of how market sources differ in insights, context, and informational depth:

• Primary sources provide direct, actionable insights specific to your business and target market. This data can help you make immediate decisions about your products, services, and strategy.
• Secondary sources offer a broader context that can help you understand larger market trends and economic indicators. They’re particularly valuable for analyzing industry-wide patterns and developing long-term strategies versus immediate decision-making.
• Third-party sources provide professional analysis and depth that might be difficult to achieve internally. These sources often combine multiple data points to create comprehensive market research that can guide business development and strategic planning and are often a cost-effective and less time-consuming strategy for obtaining targeted market research.
• Open sources offer real-time insights and can help your teams stay current with emerging trends. While they may not always provide the same depth as other sources, they’re valuable for monitoring changes in consumer sentiment and market dynamics as they come straight from the same platforms your consumers typically use.

Which market sources should you leverage for your business?

The most effective approach to gathering market knowledge is to leverage multiple sources while ensuring the quality and relevance of the information collected. Your research strategy should focus on gathering data directly related to your target market and immediate business objectives while aligning with your budget and long-term goals. 

Keep in mind that it takes time to gather market research and create a knowledge base. It’s also an ongoing process as trends emerge and fizzle out. Therefore, your market research strategy will — and should— change over time to accommodate shifting trends and consumer behavior patterns.

These are the best practices to determine which market sources to prioritize: 

Assess your specific information needs

Start by identifying gaps in your current market knowledge base and determining which data points are most relevant to your decision-making strategy. You’ll also want to consider the size of your business and financial resources to help further prioritize your informational needs and sources you can afford.

Evaluate source reliability

Upon narrowing down your sources, verify the credibility of any research providers you’re interested in. To do this, check their credibility through their data collection methodologies, the company’s history and authority, and so on. It’s also essential to ensure the information coming from these data sources is current, relevant, and objective. 

Consider resource allocation

Next, you’ll need to balance the time and cost of your market research against its potential benefits. Start by creating a budget for your market resources and assessing your organization’s internal capabilities for data analysis. This will give you an idea of which source types you can adequately fund in addition to determining the time and manpower requirements needed for the research methods you plan on utilizing.

Focus on actionable insights

Be sure to prioritize the sources that can provide your marketing team with practical and applicable information, ensuring that all data can be translated into strategic decisions. This means you’ll want to focus on the sources that will complement your organization’s existing knowledge base or enable your teams to make immediate decisions that drive results you can build on. 

Maintaining a balanced approach to market research is essential. Multiple sources should be used to create a comprehensive understanding of your market. However, quality should always take precedence over quantity. Poor or outdated information can lead to misguided strategies and wasted resources.

Remember that market knowledge isn’t static — it requires continuous updating and refinement. Your research methods and sources should adapt as markets evolve and consumer preferences change. Regularly assessing your market research strategy ensures you get the most value from your chosen sources and maintain a competitive edge in your industry.
That’s why organizations like yours need Market Logic’s advanced AI-powered insights solutions. Our DeepSights™ Assistant and DeepSights™ Workspace can help you obtain and improve upon valuable market research data for immediate decision-making that drives success. Book a demo today to find out more.