Why do companies buy market research

Share via Email Market research can help small businesses keep a look out for what what their local customers want. For her, market research is important because the competition is so much tougher these days. Not only does it face competition from local as well as international companies, often these competitors are much larger and have greater negotiating power to source and sell at cheaper prices.

Why do companies buy market research

Cheapness of data is missing the point. The issue is value or perceived value of the impact of the insights generated in most cases.

Monday 13 August6: Continuing the debate Edward Appleton launched last week on the drivers of client-side decision making regarding data sources, today Neal Cole shares his experience from client-side as well.

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The issue is value or perceived value in most cases. This is why management consultants are able to command such high fees when they often re-package research and simply present it in a way that is more strategic and digestible for senior management.

I have always found research budgets easy to come by when I have been able to demonstrate a clear link with sales or costs. However, I can also identify with the sentiments expressed by Reg Baker. From my experience in financial services I have observed a number of situations that can encourage cost to override the quality of data.

Rosters that are established with too much emphasis on cost savings and not enough weight given to building relationships rarely achieve their aims. The result is a bureaucratic straight-jacket and wastes a lot of time and money. You end up with fewer suppliers and agencies are forced to reduce unit costs.

why do companies buy market research

However, this simply encourages agencies to offer a skeleton service. Anything not explicitly included in the proposal is then charged as an extra. Given the need to show savings it is then difficult to justify any increase in budgets to cover extras that might improve data quality.

This strategy for saving money is essentially counter-productive. However, random cost challenges where management ask for cost savings after the agency has been selected can have dire consequences for complex studies.

Some companies are generally obsessed with cost reductions. Such companies are so focused on costs that added value functions like research are treated the same as any other cost centre. This means that procurement expect research departments to use methods such as online auctions for competitive tenders.

This again is treating research and data as a commodity and assumes everything including insights can be measured. When Global Head Offices impose a standardized survey across all their markets there is a big risk that such research will not be fit for purpose in many countries.

This means that local management do not buy-in to the insights and the study is seen as a necessary evil.

Why Companies Need to Market - and Not Just Sell - to Existing Customers

One consequence is that quality of data is not seen as a priority. There are lots of other situations that I could mention where cost is seen as more important than the quality of data, but most derive from a lack of appreciation of the potential value of insights.

The key take out is that we recognize there is a problem and we put strategies in place to deal with it. From a client-side perspective it is a constant process of stakeholder management, and building relationships with suppliers.Q: What kind of Research is this?.

A: Most products and services you buy and use everyday are typically tested through market research before they are put on the market. This helps companies improve their products and services by listening to the consumers. Just a few of the topics we have dealt with in the past include, baby diapers, sodas, fast food, cell phones, auto insurance, pet food.

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why do companies buy market research

Morgan said Friday. While large companies spend huge amounts of money on market research, the good news is that plenty of information is available for free to entrepreneurs on a tight budget.

The best places to start. Buy Creative Destruction: Why Companies That Are Built to Last Underperform the Market--And How to Successfully Transform Them on vetconnexx.com FREE SHIPPING on qualified orders. Market research analysts study market conditions to examine potential sales of a product or service.

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They help companies understand what products people want, who will buy them, and at what price. Because most industries use market research, these analysts are employed throughout the economy.

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