By: Sakthi Prasad --
04 February, 2015
Large consumer products and pharma companies periodically source market research services to keep track of how their products are faring versus competition.
Market research can be divided into three service clusters: data, analytics and insights. Of the three, Insights cost more than the other two simply because of the intellectual nature of the service.
And when companies sign contracts with market research firms, they are usually charged for Insights -- even though nearly 60-70 percent of the research requests are periodical in nature, and involve less incisive insights. This generally leads to higher pricing when companies source market research services from vendors.
Market research per se cannot be done away with because of the imperative business need for real time insights on consumer decision making both inside as well as outside the retail store.
And such a need gave rise to demand for big data analytics. The ability of big data vendors to provide customized insights on various target groups is the reason for the phenomenal growth of these supplier segments over traditional market research agencies.
While big data would not be able to answer all of marketers' questions, it still serves as an addition to their decision making ability and is possibly regarded as substitute to traditional market research methods.
Though innovation and precision are among major considerations for supplier selection, cost continues to be the single biggest determinant in sourcing decisions. Critical cost components such as salaries rise annually, which directly hit the ground research cost. On the other hand, many analytics firms and data providers manage to keep costs down as they rely more on technology and less on manpower.
Inflation rates applied on market research services on existing contracts is one of the important annual cost drivers. However, there is a way to keep a lid on the market research cost without compromising on quality by tactically engaging with data vendors and IT companies who provide analytics software as part of the overall IT spend.
During the webinar scheduled for Feb 18, Veerappan M, Beroe's Senior Research Analyst - Marketing Services, will talk about how data vendors and analytics providers are starting to get preference over traditional market research companies.
Veera will also explain how consumer products and pharma companies can keep a lid over rising market research expenses by selectively engaging with data and analytics providers.
To take part in the discussion please click to REGISTER
COVID-19: Assess impact on your suppliers and ensure business continuity with Beroe’s WIRE
(World Instant Risk Exposure)