6 Steps to Building Your Market Research Budget
We’ve outlined for you a six-step, easy-to-follow process for determining your company’s market research budget.
In this blog post, we’ll tell you how to easily develop your market research budget.
Building A Market Research Budget in 6 Easy Steps
As the leaves turn from Summer’s bright green to Fall’s rich hues of red, orange and gold and the air grows crisp, our focus turns toward next year ’s marketing plan and budget. Determining your company’s market research needs and the related costs can be challenging. The following steps can help you build a realistic and cost-effective marketing budget.
1. Identify your anticipated market research needs.
You can determine your research needs by asking yourself a few key questions:
- Will your company be developing or launching any new products or services?
- Are there any new or new formulas for our products that require testing?
- Do you need to test the temperature on customer satisfaction?
- Will the company be expanding into any new markets?
2. Organize your market research projects.
Next, prioritize your research needs first by organizational priority and then by chronological order. This will create a calendar from which planning and project management goals can be established.
- Who needs the research?
- When is the information needed?
- What organizational priorities dictates this?
- What is the chronological order based upon priority?
- Approximately how long will it take to complete each project?
3. Look for demographic duplication.
Some information can be acquired by combining research studies and separating the data at the analysis stage. The reports are then generated separately saving time and cost while providing accurate information. To determine if this is possible, look closely at the demographics of the sample populations to determine if there is sufficient overlap.
4. Identify which needs can be conducted internally and which require outside assistance.
Some of the information you are seeking can be found through internal research. This information may be available through online sources, the local library, trade and professional associations and directly from your customers and clients.
5. Secure project cost estimates from a market research company for research done externally.
This gives you all the information you’ll need to build you budget. Here are some of the budget line items you can include in your budget spreadsheet.
- Internal Research Expense (Purchased Reports, Online Survey Tools)
- Recruiting Expense
- Participant Premiums
- Market Research Consulting Fees
6. Build your budget.
Having an established relationship with a market research firm will facilitate the budgeting process because the firm already understands your company and the internal structure and dynamics.
- For increased efficiencies, consider combining two or more projects. If they are similar, you could receive advantageous pricing when working with a market research consultancy.
- Make sure you have an accurate idea of the sample size you will need. When considering custom studies, including interviews and focus groups (online and in-person) your budget will need to include an incentive for participants.