Question

Topic: Research/Metrics

How To Determine The Costs Of A Marketing Research

Posted by dr.wahied on 4/13/2013 at 11:13 AM ET 250 Points
I’m writing a request for proposal and I’m almost finished, what I need to know is how to set the cost of various activities that will be done
I don’t have any information about that matter I need to know the average cost of the following
Desk research
Focus groups
In- depth interviews
CATIs
Fees for coding and data preparation
I need to know the average cost regarding recruitment and facilities and the average time that each phase should take
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RESPONSES

  • Posted by SteveByrneMarketing on 4/13/2013 at 6:52 PM Accepted
    There are no "average" costs for marketing research projects or research components. The range can be from hundreds to tens of thousands of dollars and more. What's the average cost of building a luxurious custom home? A general contractor bidder would need tight architectural plans, location and all additional required details.

    I suggest you consult with a marketing research expert to help you finish your RFP. After all you don't really need any average costs, you need the specific costs for your project.
  • Posted on 4/13/2013 at 9:44 PM Accepted
    Steve Byrne got it right (as usual). There are no "average costs." It depends on the specific project and the specific objective of the research and the expected use of results. It's not clear how the answer to your questions will help you make any decisions -- even if there were "average costs." How do you know your project is "average?" Very few are.

    Complete your RFP by defining the objective and expected use of results. Then let professionals tell you what it will cost. If it's too much, you can always adjust the objective to fit your budget.
  • Posted by Gary Bloomer on 4/14/2013 at 6:25 PM Accepted
    Not possible. Not without some kind of details, and really, anyone lobbing out numbers, willy-nilly, is doing a disservice to you and to themselves.

    Desk research? Depends on the niche, the number of days or weeks of work, the goals of the research, and what gets done with the numbers and the details once they've been pulled.

    Focus groups? Depends on how many, in which niche, in which town or city, and for age of group, social and economic backgrounds, and product type.

    In- depth interviews? With whom, by whom? Where? To what ends?
    CATIs? Depends on the callers, the scripts, the call recipients, the quality of the list in terms of its freshness and in terms of the attitudes and willingness to move forward of the people receiving the calls.

    Fees for coding and data preparation? Depends on how much and how long.

    I need to know the average cost regarding recruitment and facilities and the average time that each phase should take? Depends again. How much have you got? How much do you want to spend?

  • Posted on 4/21/2013 at 3:08 PM Moderator
    Most important, in this order:

    1. What's the objective of your research? What do you need to learn?
    2. How will you use the results? What action will be triggered by the research findings?
    3. What is the information worth to you? How much are you willing to pay for the answers to your question(s)?

    Once you've done a good job of answering these questions, a market research professional can tell you what it would cost to deliver the answers, what your options are, and which methodology makes the most sense for you.

    If your budget won't allow you to get the answers you want, you can always modify the objective to see how close you can come with a smaller budget. (Example: Maybe you can reduce the sample size and live with a lower level of confidence in the accuracy of the answer. Reducing risk has a price tag.)
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