Hiring Outside Agencies

Many a time, companies do not set up marketing research departments, as they do not have adequate amount of research consultant as and when they feel the need for research. Especially in a country like India, the number of companies having their own marketing research departments is extremely limited. Many ‘buy’ marketing research from outside. Such companies should know how to select a marketing research agency before sponsoring a research study.

Choice of Research Agency Why hire marketing research?: If a firm does not have persons well-versed in research techniques, it has no choice but to hire the services of a marketing research agency.

When a firm has a separate marketing research department or cell, it may find at a particular point of time that it is fully engaged on certain other studies and, as such, it cannot take up an additional problem, for detailed investigation. In that case too, it has to assign the study to an outside marketing research agency. The firm may find that an outside agency may complete the study faster, at a lower cost as well as with the utmost objectivity. As such it may decide to assign its study to an outside agency

Now the next question to be considered is that how does the firm go about choosing an outside marketing research agency. In developed countries, there are a large number of such agencies which either undertake complete ad hoc research projects or perform one or more specialized services such as drawing a proper sample of respondents, interviewing respondents, or processing data. In all those cases where it is necessary to hire outside agencies, the marketing researcher must be able to evaluate such specialized services.

There are several dimensions which need to be kept in view while selecting an outside agency for conducting Marketing Research. These considerations may be enumerated as below:

• Technical Expertise: The marketing researcher should know who is to undertake the study and what is his proficiency in marketing research The client firm may find that a research agency is good at basic studies but is not competent enough to undertake complex studies. Some research agencies are poorly staffed and as such they should be avoided.
• Objectivity: The question of objectivity is very important. Outside agencies should be reputable for their objective approach in research projects.
• Confidentiality: The client firm must ensure that the research agency maintains strict confidentiality regarding the project.
• Economic Factors: A client firm may invite research proposals from more than one agency. In such a case, it would choose the most economical agency. However, client firms should not overlook the fact that some agencies are very economical, but at the same time their quality is also poor. Quality should not be compromised.
• Timely submission of reports: The client firm should enquire about the reputation of the research agency especially in relation to its timely submission of reports. Sometimes, outside agencies are quick in taking up assignments from clients but are not so prompt in carrying out the task.
• Experience of the Supplier: The client firm should ascertain the standing of the agency. While general experience is very important, relevant and specific research experience is what should be looked for.
• Reputation of the agency: It is necessary to ensure that the agency has a good reputation. This consideration is important for lending credibility to the research findings. This is of special importance particularly when the client firm intends to use the study for creating an impact.

Since no single agency is likely to be strong on all these considerations, it is necessary that the client firm adopt a reasonable approach in this regard. It should ascertain which of the above criteria are crucial for its research project and then to select an agency.

Advantages of Research Proposals

There are some advantages of getting a research proposal from an outside consulting firm. First, there is fresh thinking on the marketing problem referred to by the company. This is because the outsider’s approach is not subject to any constraints, which may be applicable within company. Second, it enables the company to evaluate the research capability of the consulting firm and its reliability. Third, a research proposal is always desirable as it offers some sort of commitment from the consultant to the company. In its absence, there may arise some misunderstanding and differences between the two parties regarding the specifications, time or price. Finally, the research proposal, once approved by the company, becomes a contract, binding both the parties. The company can then turn to other problems, since it is sure that the research will be taken care of by the consulting firm.