Market Research: In-House or Outsourced? Pros and Cons

May 13, 2022Dated:  | |

Although it can be tricky to prove the correlation between market research and return on investment (ROI), its function in assisting firms in meeting their objectives is a compelling reason to ensure your organization undertakes it.

What is Market Research?

Through direct consumer research, market research establishes the feasibility of a new product or service. It helps businesses to identify their target market, gather and document feedback, and make informed decisions. 

Organizations can undertake market research or outsource it to competent agencies to carry it on their behalf.

Outsource or Conduct In-House Market Research?

In-house and outsourcing agencies are fighting to provide the ideal experience possible to businesses. The question comes down to who can provide the most comprehensive market research.

Let us decide for ourselves by learning the two terms and weighing their pros and cons.

What is an In-house Market Research?

In-house market research is when a firm implements a study using its corporate structure and internal resources. It often indicates that an organization has a person or team committed to conducting research in its favour, commonly within the marketing team.

Advantages and Disadvantages of an In-House Market Research

Large organizations with the financial resources to maintain a whole staff of market research professionals generally conduct in-house market research, or in some cases, some firms may request that their marketing staff do a study to save money.

The Cost-Saving Assumption

Hiring a third party to conduct market research can be more expensive than running it in-house. However, in-house teams are frequently less efficient than an independent market research firm. The overall cost savings may not be as significant if you compare the efficiency of professional market research firms.

What is the Meaning of Outsource Research?

Outsource research is when a business contacts a market research firm, such as Flying Colour Tax, to perform studies on their behalf. 

Professional market researchers may have the ability and knowledge to conduct a complete investigation than a small in-house team or individual.

Pros and Cons of Outsourcing Market Research

By outsourcing, your firm will receive a specialized market research team that is thoroughly conversant with industry and market research best practices.

An outsourcing company devotes all efforts to learning and excelling in market research.

Expert Assistance

Market research outsourcing staff have the expertise and a knowledge base that can only come with years of experience.

Ask the right questions

It is necessary to understand how to construct a survey or interview guide as per specific business goals and objectives for a successful market research project. The outsourcing market research team asks the right questions and employs strategies that work to obtain data, and these teams interpret data better.

Conclusion

So which is better, Outsourcing or in-house marketing research? If you find it challenging to answer this question, why not try a combination of both and benefit from it? For instance, businesses have an in-house team that does day-to-day data research, sometimes outsourcing more sophisticated tasks. 

How can We Help you?

Flyingcolour can assist your new firm in conducting market research to enter a new market or launch a new product efficiently. 

The Flyingcolour consultants also assist established firms in risk management. The organization can then choose whether to continue working or cease and resume new procedures. 

It will ultimately help your company earn more money by reducing losses and improving your brand image.

Book your free consultation with us to know more about the comprehensive services.

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