The Pros & Cons of Hiring a Market Research Firm
Market research is vital for business growth and expansion. Understanding the market and the consumer helps build brand image and develop effective marketing strategies. To excel beyond the competition, it is essential to be aware of what’s happening in the industry, what’s being said by the public, and how this could impact your brand. However, not all businesses have the expertise or ability to do their own market research, which is why hiring an outside firm can be beneficial. Here are the pros and cons to assess when thinking about hiring a market research firm.
The Pros of Hiring a Market Research Firm
Proven Methods Deliver Highly Accurate, Reliable Results
Market research firms specialize in research, so they have the necessary tools and knowledge to provide your brand with highly accurate, in-depth information. Many researchers have academic training and have worked in the industry for several years. Using their past experiences and data, they can uncover tailored research needs and brainstorm creative solutions. They will know what methodologies to use to craft the most impactful story for your brand launch, strategy shift, or marketing campaigns.
Less experienced individuals may conduct research that results in inaccurate data. As a result, their findings may tell an inaccurate story and create an ineffective strategy.
Unbiased, Third-Party Opinion
Your brand can gain a neutral, unbiased opinion from an outside firm. The firm can provide ideas on research methods and marketing strategies. Since they are not part of your company, they will rely on objective research and expertise to develop unique recommendations tailored specifically to your brand. In addition, consumers may be more open about their opinions and experiences when responding to an independent research company, rather than a brand representative.
Credibility & Engagement
The press loves original research. Hiring a market research firm gives brands original, credible research that can be used to differentiate from the competition and is seen as more trustworthy by viewers. Additionally, content that contains original research generates more website traffic, social shares, and mentions online.
The Cons of Hiring a Market Research Firm
Hiring a market research firm is not free. It can be costly to pay for the experience, resources, and time to conduct quality, effective research customized to your company.
While it can be expensive, research had proven the ROI. Research can refine your market strategy, tell you which advertising creative is most effective, and even give you a concise go-to-market plan.
Firms cannot conduct meaningful research overnight. It takes weeks and even months to analyze the results, create a strategy, and execute the plan. Although research plans can be made for a certain timeframe, it is simply not possible to get immediate results, especially when hiring an outside research firm that is conducting research for various clients at once.
Market research is incredibly useful for growing a business, but there are many factors to consider. Hiring a market research firm can be extremely beneficial to gaining an expert, unbiased, and credible view. However, one must keep in mind the limitations of cost and time.