Market research helps businesses understand why customers purchase specific products or brands. It is directly related to the marketing mix, as it allows companies to make decisions about product, price, promotion, and place through the data collected during market research.
There are several ways to conduct market research such as surveys, product testing, interviews, and focus groups.
Outsourcing market research can be a good option if you don’t have the time, resources, or expertise to conduct research in-house.
There are several reasons why companies choose to outsource their research projects to market research companies:
- Expertise– Market research companies have the expertise and experience to conduct research projects efficiently and effectively.
- Cost savings– Outsourcing market research can be more cost-effective than conducting research in-house.
- Access to technology– Market research companies have access to state-of-the-art tools and software for faster and more precise data acquisition.
- Objectivity– Market research companies can provide an objective third-party view of the research, which can help remove confirmation bias.
- Credibility– Market research companies can provide credible insights whether they are good news or bad news.
- Faster turnaround time– Market research companies can complete projects more quickly than in-house teams.
- Flexibility- Outsourcing market research allows companies to scale up or down as needed.
- Focus on core competencies– Outsourcing market research allows companies to focus on their core competencies while leaving the research to experts.
- Access to a wider range of respondents– Market research companies have access to a wider range of respondents than in-house teams.
- Better quality data– Market research companies can provide better quality data than in-house teams.
Here are 10 things you should consider before hiring a market research company:
- Define your research objectives– Before you start looking for a market research company, it’s important to define your research objectives and what you hope to achieve from the research.
- Determine your budget– Market research can be expensive, so it’s important to determine your budget upfront.
- Consider the type of research you need– There are many different types of market research, including surveys, focus groups, and interviews.
- Look for experience in your industry– It’s important to look for a market research company that has experience in your industry.
- Check references– Before hiring a market research company, be sure to check their references.
- Consider their methodology– Different market research companies use different methodologies, so it’s important to understand their approach.
- Ask about their data collection methods– Data collection is an important part of market research, so be sure to ask about their methods.
- Consider their reporting capabilities– Reporting is an important part of market research, so be sure to ask about their reporting capabilities.
- Ask about their timeline– Be sure to ask about their timeline for completing the research.
- Consider their communication skills– Communication is key when working with a market research company, so be sure to consider their communication skills.