Are you planning to start your market research service company? Before you start your journey, understand what a market research firm does and which type of firm is right for you.
What do you Understand by a Market Research Company?
A market research company is a business organization that gathers and analyses the data of customers, distributors, competitors, or similar marketplace forces. The majority of the market research companies perform commissioned work by certain firms to fulfill specific purposes.
Types of Market Research Company
If you plan to start a market research company, understand each of the options you have. There are 5 different options available for market research firms.
- Research Report Purveyor
- Field Service Company
- Mystery Shopper Company
- Shopper Insights Company
- Full-service Market Research Company
Which Type of Market Research Company is the Right Option for you?
The answer to your confusion regarding the type of market research company you should choose depends on the type of data you wish to deliver. A company for custom research operates differently than a firm that processes aggregated data. Your business objective determines the type of research company you need.
Several questions come to our mind when it is about starting a market research company. To find the right business partner and customer, it is essential to diversify the business. To understand which option is right for you, we have listed a comprehensive, insightful guide to aid your business.
Here we have a brief on each market research company, its pros and cons, and who is best suited for that category.
1. Purveyors of Research Report:
A purveyor for research report compiles and collects data on particular trends, industries, demographics, or market situations that can benefit other businesses in the industry. They prepare a report and make it available for online purchase. It is a syndicated approach towards market research based on self-funded study reports in your buyers’ field of interest.
Pros: Being a vendor to research reports gives your company direct access to important information.
Cons: It doesn’t deliver custom information to cater to individual company needs, making it considerably expensive.
Best suited for: Research Report firm is a business opportunity for firms seeking a wide range of information with money and time restrictions for custom market research.
2. Field Service Companies:
Field service companies focus on the collection of data by engaging the consumer market right at the foundation. This methodology for market research involves regular surveys, group focuses, data collection and observation, and interviews. In this type of business, you will not plan the research or analyze the finding. But the company solely focuses on accumulating and recording information.
Pros: This research method provides a quick solution to sourcing unique data that can directly influence consumers.
Cons: Field research is not sufficient in answering every question in the market. You need a research plan along with it.
Best suited for: Field research is suitable for businesses, agencies, or brands that are keen to gather first-hand information about the market without money investment for data collection or logistical support.
3. Mystery Shopper Company:
A mystery shopper company employs participants to work as the original customers in the real service or buying atmosphere. These firms accumulate data and appraise the experience of these mock clients for assessing a business at the foundation level. Mystery shoppers share their experiences about a brand, and the company evaluates the data to improve their services.
Pros: It is a cost-effective research methodology to provide companies with a new perspective.
Cons: The scope of scaling the research report qualitatively is limited.
Best suited for: Mystery shopping research is essential for companies that have franchisee subdivisions or regional branches.
4. Shopper Insight Companies:
Shopper Insight Firms are agencies that focus on insights from shoppers to prepare an enthralling case on purchase decisions taken on a moment. It is about understanding the behavioral nature of consumers, the way they assess products and make a decision. The methodologies for this market research vary between in-store data-point capturing or eye-tracking experience.
Pros: The process offers an expert opinion that effectively uses the shelf space.
Cons: This approach doesn’t help in the innovation of products.
Best suited for: Team of marketers and researchers with significate CPG range in portfolio creation.
5. Full-Service Market Research Companies:
A full-service market research agency is the most popular type of firm that helps answer all questions about marketing. They design a market study procedure from the foundation level and present the result in the market in a useful manner. It is a customized form of market research that involves management methodologies to understand the business requirements.
Pros: It offers a complete market survey experience, answering all business queries.
Cons: It is a costly and time-consuming research method
Best Suited for: A full-service market research is suitable for businesses of all sizes that want to invest in customized research solutions.
Different companies focus on different markets and hence require customized solutions in most cases. Before you start the business as a market research service provider, understand the spectrum of work and the areas you can cover. Understanding market research options and the work you are expected to do helps decide the type of business you will set up. Irrespective of the project you are handling, you need to set up a firm that can answer all the customers’ queries without any delay.