The cost of market research – How?

Today, information is considered invaluable. Any company needs internal information (generated by different departments) and external information (generated by the understanding of the Company) to develop a marketing strategy effective. core areas, companies that wish to be informed, usually include: market, customers, products and marketing activities in view of the client companies and competitors.

Do it yourself or outsource?

Although most companies collect and process internal information independently usually have considerable difficulties in collecting and processing outside information. Research based on external sources can be done independently by marketing department. Also be outsourced, either to a body of specialized research. principal challenges of environmental research conducted independently for example, where employees are competent jurisdiction, the technical and financial capacity to conduct research (ie, establish or lease of a group of researchers, rent a room for interviews of focus). In the case of outsourcing, the main problem is cost.

How and why so expensive?

This question sums up the attitude of managers towards providing research organizations. It is believed that market research is expensive, and no matter how much they could devote to it, the money will be fully utilized. Most complaints are made about the cost of completion time (pushing constantly limits), the method of reporting (unintelligible language without comment cards), endless preliminary provisions.

Obviously, not always so. What are organizations that carry out fully its responsibilities, meet deadlines and still relatively cheap.

Cost Research the employer

What is the cost of market research in the perspective of an employer, ie, a client of an agency investigation? Several cost components can be distinguished: time – lost in the contacts with the agency, saved by good communication with agency knowledge – that allows evaluate the research needed to decode the numbers without comment, said the psychological costs or loss of character in contacts with representatives agencies and supervisors, saved by a quick and easy exchange of information with the agency, and the price fixed by the body.

The most important is the price. While administrators say they take into consideration many different factors, while the selection of research agencies, the basic price and important to them the theme and the speed with which research is conducted. Many managers dream of finding a body of research that will solve your problem within 24 hours free.

The principle of pricing

According to research organizations, it is difficult to price research individual. It is relatively easy to make this highly standardized research, such as global research. Difficulties arise with customized research.

David Ogilvy once said that the pricing is a guessing game. To some extent, can be expressed in this way. An example of practical application guess the price may be pricing in a bid to a bid. It's like a game between participants in a tender and the client. In addition to setting the minimum price which the cost of research pay for itself, each member has the financial capacity to guess the employer (the employer has no money and how it can spend to research), and the financial ability of competitors (the price they offer and how they can reduce the price).

The theory gives three principles of fixation Price:

* Cost
* Demand
Competitions

These three principles are used simultaneously in market research.

The agency wants to do research on the high prices the cost of the investigation. Given that the cost may depend on other types of research (research quality is less expensive than quantitative) methods of obtaining and processing information (those made by phone are cheaper than direct interviews) sample size and availability (smaller samples are cheaper, are not easily accessible reviewers more expensive), the number of persons engaged research and their level of competence. In some cases, companies agree to a specific technique of dumping and pay the extra money for research. It is possible if the potential customer, for example, announces tender for a commission, but a number of committees can be expected later.

research organizations take into account the financial capacity of a client when they establish a price. But do not expect exactly the same research by a mogul and a major producer of shoes. This not only achieve a considerable reduction due to the lower scale of the operation. The research will be completely different methodology adapted to the needs and potential employers.

The search market is driven by intense competition agencies. Therefore, it is important to note how prices are set by competitors. Only a few decided to publish their price lists. Among the 39 research institutions, whose names are on the calendar "The media and advertising" (Medi Almanac? Reklamy ") and those who have their own website, only three chose to submit their lists of Pricing based on research and only offered the possibility to order for example, a price list.

The issue of price lists

Why Why do not most organizations give price your services? Because it would mean the normalization of investigative techniques and would not be consistent with that most agencies that the investigation is tailored to the needs and opportunities for a client. The lack of price lists helps pricing seen as a tactical element that gives a lot of flexibility and allows for market flexibility.

Moreover, even the official price lists are often a myth. Actual prices are negotiated individually and are lower than those included in the price lists. However, do not expect discounts as those announced in the advertisements (40%) but it is possible to lower the starting price of 5-8%.

What to do to make it cheaper?

Company with the intention of carrying out a study market, and at the same time reducing the costs considerably, has several options. First, if the company intends to carry out quantitative research, may reduce or eliminate quantitative research sample for qualitative research. Moreover, the company can use a research organization Small, Research Institute of Science or higher educational institution. Third, the company may try to carry out research through its Department marketing.

How to compare the offers?

Market research offers made by the specific organisms can be compared among themselves and compare a Fiat to Mercedes. They have one common characteristic – both cars. Furthermore, differences are only on the left. Just as the world operating a Mercedes, not every company should use the services of ten largest research agencies in Poland. Everything depends on the needs and affordability.

What should be considered when selecting the most suitable offers?

* Is a report included in the price of basic research or is it to pay more?;
* A report with guidelines for the company or to present the results only?;
* A report must contain the raw data so as to allow independent processing?;
* It is a graphical representation of results (graphs and drawings) included in the base price?;
* Are additional calculations, the changes (eg for three months from the filing of the report) included in the base price?;
* Is additional compensation of respondents included in the cost of research?

Price comparisons

Agencies help but compare their offers and, especially prices. Therefore, there is virtually no research presentation standard prices of individual services. Most of them relating to the costs of market research, revenue agencies, price, number of interviews, but no.

Market research should not be too expensive. It's great time to recognize not only that the search agent (more expensive) has a meaning. The company has access to a range of methods with different prices. Each method has its advantages and disadvantages and it is society itself that must, with the possible assistance of an organization Research, J. benefits and cost of the method chosen. The basic rule to remember is not to say that research is done to minimize the risk a bad decision not confirm the accuracy of the activities that have already begun.

About the Author

This article was translated by mLingua Worldwide Translations, Ltd. mLingua provides professional language translations in all major Western and Asian languages, software localization and web site translation services.

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