Question

Topic: Branding

How Much Should Research/branding Cost?

Posted by Anonymous on 8/19/2013 at 5:00 PM ET 50 Points
Looking to merge with a few similar service providers under a common brand to strengthen our collaborative offering. Would be bringing in 4 different companies under one new name with a single brand identity, but incorporated for each as a separate division.

Discussing having some market research done to gauge the market positioning and brand recognition in the industry.

Looking to have a Brand Guideline developed to ensure proper execution of brand strategy as well.

Any ideas of what we should expect to pay for this? Receiving various quotes and looking to make sense out of it all. All together, roughly equating to $2 mil in annual revenue.

Thanks!
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RESPONSES

  • Posted on 8/19/2013 at 7:07 PM Accepted
    Where? What industry? Do you have a list of your target audience, or is finding them part of the research project? What sampling error are you prepared to live with?

    Without this information it's impossible to give an estimate of the likely cost. Best if you can work with a reputable market research firm to guide you. Any estimate we provide with this little information is all but guaranteed to be inaccurate and a waste of our time and yours. Worse, it's likely to be completely misleading.

    If you need a referral to the right kind of research professional to design the research methodology, act as your consultant, and/or conduct the study, let me know offline. Just use the contact info in my profile.
  • Posted by Jon Hungerford on 8/19/2013 at 7:27 PM Accepted
    I've had my views changed on branding over the last couple of years. Coming from a graphic design background, I used to be quite rabid about the importance of choosing the right logo.

    These days, I think it's more important to focus on what you are rather than what you look like. A logo in itself doesn't have branding, the brand is what customers/suppliers/employees associate with your business. This will build over time for better or for worse. The logo is just one face of your brand.

    In my opinion the way: phone calls are answered, emails are replied to, customers are served etc. are more important than what your logo looks like.

    But to get back to your original question: don't waste too much time or money on it. A competent graphic designer should do some basic competitor/market research themselves anyway, this is generally more than enough. If all you're after is a logo and brand guidelines, $2-3k should be ample. You could spend a lot less by using services like eLance or Freelancer, I still prefer using a local design agency.

    No offense, but you're not Cocoa Cola, or Nike, or Apple. If you're messing with a big, well-established brand, that's when the market research etc. becomes important.
  • Posted on 8/19/2013 at 9:24 PM Author
    We are in the finance industry and the conglomeration encompasses northeast, midwest and southeast markets. From what I understand, I think a 5% sample error is what we'd be looking for, though I'm kind of looking for some expert opinion on this. Ultimately, since there are firms we have been connected with but aren't associated with personally, I'm not 100% confident to say I know these people are giving the advice that makes the most cost effective sense for our circumstance. We have an idea of our target audience, the biggest questions for the research are in determining our level of consumer confidence and brand recognition/loyalty to address any needs and help determine the best way to break into new markets. In addition, it could also prove beneficial in solidifying the ideal choice for branding all the joining names together under.

    Personally, I think the research end is important, but not to the extent that we need a specialized, expert market research firm. I could be wrong, but from what I've been experiencing, the average marketing group/agency should be sufficiently knowledgeable and equipped to handle our research needs to best direct us. But perhaps some of the experts would say we should get a market research firm and a branding firm, rather than someone who does both.

    The question comes in because we've gotten some quotes ranging from $10k to as much as $60k. There's a pretty big disparity there and while I'm always the type who says trust the expert in their field, in the absence of clear direction and evidence for one extreme or the other, I'm inclined to go on the low end. But, again, not being a marketer, I want to do it right for the best interests of our joint firms moving forward.

    We believe that based on our individual successes in our respective markets, the merging would enable us to grow in those markets as is, not to mention opportunities to duplicate results in other territories. In our industry, we abide by a strong, ethical principle that we only do what we feel is in the absolute best interests of our clients. I'm hoping to find the right direction here for ultimately determining the best level of service and marketing firm to trust our futures with.

    Hope I gave more accurate details for helping provide your sound, expert advice. Thank you.
  • Posted by SteveByrneMarketing on 8/20/2013 at 2:09 AM Accepted
    The "average marketing group/agency" would probably NOT provide you with a good result. Jack of all marketing, master of none.

    Since the proposals you received did not include solid information about the research methodology or a short list of satisfied financial industry clients and their positive testimonials, you need to keep looking.

    You really need a well qualified senior advisor to help walk you through this process. I suggest you take advantage of mgoodman's contact offer and go from there.
  • Posted on 8/20/2013 at 9:17 AM Moderator
    Now that I understand better what you're trying to accomplish, I think it would make sense for us to talk. My company is a positioning/branding consultancy. We've been doing this for quite a while. We work with a few market research boutiques -- specialists who understand what we do and what information we need to position our clients in the most effective way.

    I'd be happy to get a little more information and point you in the right direction -- with no strings attached and no obligation.
  • Posted by copywriter on 8/25/2013 at 9:23 PM Accepted
    You shouldn't be paying for branding. If you have to pay for anything, pay for advertising, marketing, and sales activities that generate a direct return on investment.
  • Posted by Moriarty on 8/26/2013 at 2:43 AM Accepted
    @Copywriter - neatly put! I'm glad you've got your ducks in a row. And welcome to the forum! If you hang around a little, I'll not be the newbie any more ;-) ;-) ;-)
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