Choosing a Market Research Services Provider

Fundamentally, selecting a market research company involves finding the best match for your particular needs. This will depend upon the skills you need to buy in, and your specific requirements as considered in the research brief.

Before you start

Market research exists to provide an objective view on markets, products, services, competition, opportunities, threats, resources and business development. Increasingly recognised as essential for success in any private or public sector enterprise, research data is a key part of knowledge management in the marketing mix.

In planning research, the first action is to review what you are looking for, and this may depend on your own experience, skills and input. An experienced marketing person may only need to buy the data capture (fieldwork) or survey analysis (DP) aspects. More usually the buyer will be seeking complete consultancy in problem definition, planning, questionnaire and sample design, implementing and interpreting research. The researchers’ skills are in identifying the most appropriate techniques and in interpreting the findings, impartially, and in context, measured against the brief.

The brief

A clear brief is essential to get the best from your research agency. Work with an agency as a partner - the more they understand your business the more they can use the research to assist your business decisions.

A brief should cover:

Business objectives - what problem or opportunity is the research addressing, in context, what might change as a consequence of the findings, and who will be affected?

Research objectives - the detail of this may depend on the experience of the buyer, but will usually cover expectations of providing answers to defined key questions, the people to be researched (clients, prospects, employees). Keep research focused on the key issues; avoid “whilst we are asking them, it would be nice to know …”

Methodology - invite the agency to make recommendations, depending on the nature of the research. What data are available for sampling or for comparison and measurement?

Timings - preferably specific but realistic deadlines. When does the research need to be completed, what are the lead times for taking action?

Deliverables - what is the buyer expecting: questionnaires, a data file, tabulations, a report, a presentation, consultancy, assistance with implementing change? If only fieldwork or survey analyses (DP) are required then such companies are shown in a separate section of this book.

Budgets - some guideline, bearing in mind the importance of the decisions to be made.

Contract details - are there any formal terms of business?

Choosing a shortlist

It is a good idea to make a preliminary shortlist of four to six agencies, based on such considerations as the resources required and, if appropriate, their knowledge and experience in your particular field. This may be drawn up through reviewing the experience and special areas of expertise listed for agencies in this book. From study of their literature and discussions with them it is likely that you will be able to reduce that list to three or four companies from which to request proposals.

If references cannot be gained from previous experience, or colleagues in your industry, or your own trade association, then there is a wide range of choice. The Yellow Pages lists over 3,000 organisations claiming to do market research, but this is definitely not the best way, since most do not specialise in research and are not professionally qualified - nor are they controlled by the industry’s code of conduct.

SME’s may use research only infrequently, for a specific marketing objective - without an opportunity to build a long-term relationship, the best approach is to seek an agency with experience of your industry.

Large companies which use market research regularly may be seeking an agency to add to their tendering list, or for a supplier with skills in a new area, in which case the specialities confirmed by agency will be useful.

Buying international research

Businesses are becoming increasingly global in outlook and the need of International Market Research is growing every minute. The guidelines as discussed so far apply to international research, but other issues - culture, language, comparability, local expertise, market development - also have to be considered. There is a greater risk of costly misunderstanding when dealing with overseas agencies; what may be taken for granted in this country may need specification in another. It is preferred to have agencies having either subsidiary overseas, or working partnerships.

Evaluation and Selection

Like most business decisions, deciding on the criteria in advance helps in designing the brief and in evaluating proposals quickly. The assessment of proposals should take into account:

• The agency’s ability to demonstrate their understanding of your requirement and objectives.

• Evidence of the agency’s experience which may be relevant to the project. Case histories or references may be useful.

• Evidence of the experience and qualifications of the personnel involved at the agency and details of standards, such as code of conduct undertakings and accreditation.

• The fees quoted - do they represent value for the standard and scope of the work proposed?

• The rapport - ‘people buy people’, and it is important that a confident and comfortable working relationship can develop. If they ask to meet you then that should be welcomed.

Go-ahead

Once a decision is made then it is important to advise all agencies whether they have been successful or not, and provide a brief summary of the reasons for the selection. With the successful agency it is then good practice to re-state the key dates, prices, contact names, deliverables, and make sure changes (and implications on cost and time) are put in writing. A good agency will keep you informed of progress.

Acknowledgement and thanks for these article to Deepak Pareek, Head – Indian Research Advisory Group. He can be contacted at [email protected].

Top