Unit VII 5652
Modern business world requires constant monitoring of the market conditions, customers tastes and preferences, the behavior of competitors and many other aspects. The market research becomes especially important as a business grows. The question is how should entrepreneurs acquire this information? The companies have an option to use the services of professional researchers or to conduct the research internally. This paper provides the overview of two global research companies and contrasts the tools they use providing their services. Further, the advantages of both market research firms and in-house team researches are discussed. In addition, the paper includes modern research tools evaluation available for the internal research.
Nielsen is a global research company founded in 1923, Chicago, USA (JKR, 2014). The company has offices in more than 100 countries worldwide and provides research services on the media market. Nielsen is divided into two strategic segments: What Consumers Buy and What Consumers Watch (Nielsen, n.d.). The first principal reporting segment is involved in providing goods manufacturers and retailers with the most topical information in their business activity sectors. In addition, Nielsen suggests retail measurement services and analytical capabilities. Applying these core tools, the research firm helps its customers understand current market situation as well as manage and improve their future performance. Consumers Watch segment provides measurement services for the content used on most modern devices. They include such gadgets as mobile phones, cloud tools, television, radio, etc. In its second segment, Nielsen applies effectiveness metrics which serve for the spending optimization and help to augment the value of the content.
The second research firm is Brainjuicer. This international marketing consultancy was founded in 1999. Its headquarters are located in the United Kingdom (ESOMAR, n.d.). Brainjuicer conducts market research in order to help its clients achieve profitable brand growth. The research firm assists in the development of brand strategy, packaging, communication, testing, and tracking (BrainJuicer, n.d.). Moreover, the company offers innovative solutions and focuses on insights, concepts, original ideas as well as conducts measurement for employee and customer satisfaction. Brainjuicer provides service for 12 out of 20 biggest buyers of market research and a number of other brand companies in food and beverage industry, retail, electronics, entertainment, etc.
The main advantage of using professional research services is the access to the best research practices accumulated over the years. Reputable firms in market research are experienced in their business and usually have strong partnership and preferred rates with suppliers such as survey agencies and recruiters.
Although the price for the service is higher in comparison with doing your own (DIY) market research, the spending is mostly justified. The reasons are that the results of professional research are often superior as quality service is essential for a reputable research firm. A research is conducted using a number of layers within the firm organization, this is what ensures an extensive and insightful market research.
Moreover, applying to research firms allows the company to get ordered data and analytics or recommendation within a limited timeframe. Professional companies have their own data bases, access to the needed data, and cooperation with the search engines such as Google: this makes the process more dynamic and accurate.
In addition, the research conducted by the external source increases the objectivity of the conclusions. It bring a fresh perspective to the companies views and plans, thus suggesting alternative and approved solutions.
From the other point of view, hiring a research company is an expensive. The resources spent may not always guarantee the expected improvement and growth. Therefore, a lot of companies, especially young companies or startups, decide to save money and utilize their in-house teams.
However, the cost is not always the reason for deciding against services of professional research firms. Using in-house employees for the market research has a number of advantages. First of all, in-house team research removes the backward and forward information exchange and the round feedback process between the client and the researcher. Consequently, it facilitates the turnaround of the project (Matthews, 2015). Another advantage is that doing the research on their own, companies have access to the results of the study on every step. Thereby, the in-house team is able to refresh the study year after year exploring the inputs used and outputs expected. Later, the company will be able to facilitate cooperation with the research firm.
Additionally, confidentiality an organization maintains conducting its own market research is considered as an advantage (Matthews, 2015). Although research firms have no rights to divulge private facts and statistics, there is a higher risk of information leakage.
Moreover, institutional knowledge and requirements might be difficult to explain to an outside researcher. When an issue relies heavily on this previous experience, there is more sense to conduct an in-house research. Furthermore, if the research firm has no previous developments on the topic requested, it may take some time to deepen into the companys requirements and obtain the necessary research results for it.
Modern technologies suggest a range of tools which enable more companies to complete their research internally. These tools include Google Analytics, Google Insight, NVivo, Survey Monkey, Six Sigma, SPSS, etc. The applications suggest reliable research results and guarantee that the samples and target customer/consumers are reached. Furthermore, a company is able to access raw data required and use it for its research purposes. Most importantly, the tools discussed on the lecture enable organizations to conduct their own market research without the need of spending additional costs, time and sharing corporate information.
To conclude, in order to remain viable, the companies need to conduct a quality research of the market they operate in. It depends on the option a company views as more beneficial: to use an expensive, but experienced, insightful and fast research firm team or to conduct a thorough, private, and cheaper in-house research. Modern tools allow companies to access accurate data and create customer satisfaction surveys as an example with useful results.