How Much Does It Cost For Market Research?
What should be the ideal cost for market research? Is a question that has been plaguing the market research community over the last several years?
Market Research Cost- Why to Ascertain?
The need to understand the worth of market research has arisen due to the different economic challenges faced by the business community over the last few years because of increased competitiveness making it difficult for them to spend on different external services.
Market research services being one of the crucial departments in any company’s set up, accounts for major expenditure costs for the company. As a result, companies are always on the lookout for better Return -on -Investment options for the marketing expenditures incurred by them.
Why and How to Project Accurate Market Research Cost?
For accurate projection of Market research costs, an in depth understanding of market research is needed as it aids in better understanding of the industry, the competitors, and consumer behaviour and market trends. All these guiding factors obtained from market research aids in taking crucial business decisions.
Allocation of funds with respect to market research is done by both small as well as large organizations. Large companies with sufficient fund component make use of specialized agencies to conduct surveys on their behalf and to design marketing surveys as per their specifications.
Smaller firms on the other hand take the help of interns or students for conducting market research surveys. They even make use of the ready to available reports or surveys available online.
Based on their financial strength, companies set aside funds ranging from 1 percent to 20 percent for their marketing expenses on an average.
Situations Where Incurring Market Research Costs Becomes A Necessity For Firms
Organizations and firms face a number of situations in their day-to-day working where incurring market research costs becomes a necessity. Listed below are a few of the same.
- On the launch of a new product or service
- While choosing verticals to focus and specialize in
- During the process of development of organizational line of attack
- In the event of decline in market share
- During the period of changing industrial environment
- Last but not the least-for acceleration of company growth
Category of Market Research Costs
Market research costs can be categorized into 2 parts, Primary involving field research and Secondary involving desk research. Primary research can be further categorized in to quantitative and qualitative research.
The budget for qualitative market research involving focus groups depends on the number of participants, amount of information to be obtained, the strength of the audience and the area of the geographical region to be covered.
Individual interviews on the other hand is little expensive as compared to focus groups but it comes with better freedom of expression and also with an advantage to have an in depth discussion about the topic.
Secondary Market research involves using the existing data available online or free journals, government sources or existing reports. This type of market research is considered more cost effective as compared to primary market research.
Ways to Cut Market Research Costs
An organization can devise many ways to cut market research costs .One of them being pre-drafting of questions to be discussed in house or use of conference rooms of the companies to conduct interviews instead of conducting the same in outside locations. Using company staff to conduct interviews in place of professionals will also help to cut down market research costs drastically.
A well drafted, well conducted and appropriately presented market research acts as a powerful mechanism for change and can even provide enormous benefits for the companies undertaking it but for all the benefits to be reaped, companies needs to look at it seriously.
If you are a large, medium or small and looking for more wide, accurate and data driven market research insights, then it is always best to approach a professional market research company such as iResearch Services. iRS strives to offer cost-effective market research solutions that matches your business needs and budget.