There are pros and cons to consider when a business is deciding whether they are going to do the marketing research themselves or If they will hire a third party agency. Implementing the best choice Is all-dependent on long-term objectives and how much money the company can afford to put into the business. LITERATURE REVIEW Marketing research is a serious business problem that one point or another affects every single business be it if they are on a small or large scale.
Coming out of the gate a company must know exactly what their product or service is bout and who they are trying to reach.To Illustrate this point lets use a start up company who Is trying to start a sandwich shop. Right off the bat the first thing that is going to come to mind of most consumers Is Subway. Subway has done an excellent job at marketing themselves as a fresh and healthy alternative for the fast food lifestyle. They took an ordinary man and used him as an example of how deterring yourself from everyday temptation of fast food and switching to a sensible lifestyle can impact your life by improving your health.Obesity is a ongoing struggle hat plagues our country and has consistently been a epidemic and concern so using that angle helped them basically reach out to every single person across the nation touching every market. For the company that Is starting the sandwich shop they must take into account what is going to set them apart from a major competitor like subway. What is going to make a consumer want their sandwich and not Subways, who is practically on every street corner This right here is where strong marketing research comes into play and can literally make or break this company.
Polling a ample audience and asking them simple questions such as what they look for In a sandwich or how important It Is to have bread options can set this company up for success. Say for example consumers only want to have two simple options when it comes to bread that can help the new business save on products buy eliminating the need for multiple business relationships with several vendors and avoiding possible loss of money with not managing inventory correctly.It can be argued that companies know what product or service they are offering however they are clueless hen It comes to marketing so when it comes to Implement strategic planning or even a basic marketing plan they fall short on those elements needed to strive for success. (Crooning-Gilmore, 2012) MARKETING ALTERNATIVES Alternatives to stay ahead of faulty marketing research are to outsource initial marketing to third-party company.
The company would generate the survey to ensure that it broadens the scope of the audience.Marketing firms have an in depth knowledge of different ways to extract information from sources such as attitude surveys, awareness tests and product testing. Attlee testing conducts ten research to see now ten people Tell about the product or service.
Awareness tests assesses whether or not people even realize that your product or service even exists. The last example shows the consumers trying the product or service analyzing the wrapping, ease of use and other features the product has. Studies 2014) The last alternative evaluated is providing awareness to business owners. Giving them the tools that they need to cater to their own business goals and needs, can allow them to develop a marketing strategy that conforms to what they need.
Keep in mind that although collecting the data can be a fairly quick process knowing how to interpret the data and using it to the benefit of the company may be a little tricky. (Lee, 2002) EVALUATION OF ALTERNATIVES The alternatives provided for market research is a spectrum ranging from cost efficiency to diversity.We have to determine which of these would help not only the business owner gain advantage but the consumer as well so that they can build trust and reputation. Creating a linear programming model that would determine which method has a higher ROI and long-term success rate would be most inefficient.
After that utilizing the program evaluation and review technique (PERT) and the critical path method (CPM) to determine if investing in a third party to help with marketing or if simply putting the correct tools in the business owner hands would be the most optimized for the marketing research issue.Lets look at the first option, hiring a third party to conduct thorough research. There are a variety of methods that they can use to gather, collect and analyze your data. Marketing firms can create surveys that they present to a group of people, they can create a focus roof or they may also conduct mail/phone surveys. The benefit to using a marketing firm to create the survey for you is that they make sure the audience polled is spread out enough to collect accurate data. The professionals at firms are also caught up on the most up to date research analysis and tools.
On the flipped research firms are costly but most companies fail to realize that they end up paying for the costs in the end when business start to plummet and they eventually have to invest in marketing and advertising. (Bass Allendale, 1996) The other alternative is to educate the takeovers with tools that are available to them to do the research themselves. This obviously is the more cost efficient option however if this step is done incorrectly it may end up costing the company more in the long run.Equipping people with tools such as networking social media and even Just free tools that are available on the Internet can produce quality and useful information. (Crooning-Gilmore, 2012) There are websites that allow people to create their own surveys such as Surveying. Com. The benefits to doing research yourself is not only saving money UT you can ensure your capturing information objectively, you have the access needed to quality sample source and since you work for the business you can write the research tailored to your specific business.IMPLEMENTATION The choice is to invest in marketing agencies to do the work because the cost seems to be comparable.
Though it may end up being slightly cheaper if doing the work yourself factors to consider is time and realizing that one way or another money is going to have to be spent towards marketing. Starting off with a solid business plan, one that outlines your companies long and short term goals is the first step. Bass Allendale, 1996) Providing this information to the potential agency sets the expectations for want you want teen to Nell you conclave.