2004 Q4 Industry vs. Market Surveys
We have received several inquiries regarding industry and market surveys. For example, what are they used for, how are they conducted and what do they cost.
As a staring point, industry surveys are almost always done in total anonymity so that the respondents are unaware of the client company that has commissioned the survey. This is in sharp contrast to a market survey in which the client company is identified. Industry surveys usually take the form of understanding the dynamics of the industry including growth trends, key changes within the industry and potential opportunities. An industry survey is usually broader than a market survey and focuses on general objectives such as market share, pricing, competitor strengths and weaknesses, core competencies, etc. Industry surveys are very useful as input into the external environment section of a strategic plan.
By contrast, market surveys are often used to identify and survey prospective customers. Typically, the client company is identified and a series of questions are asked to determine if there is a fit for the product or service that is provided by the client company. If it is determined that there might be a fit, then the next set of questions revolve around the purchasing criteria used by a prospective customer to make a decision on adding new suppliers. Once this is established, then the interest level is gauged to assess if and when the client company should be directly in contact with the prospect. Market surveys are a good way to generate pre qualified sales leads. Market and industry surveys vary, both in the level of detail required and the number of companies to be interviewed.