What are the advantages and disadvantages of Marketing Research Agencies?
Initiating a separate research unit is always benefit to the company, but if it is not possible, the companies can approach professional agencies for the same purpose. Now-a-days the number of professional agencies who is providing marketing research services has been increased. A company may conduct its marketing research activities through professional agencies.
Such agency may be a consultancy agency or an advertising agency. Advertising agencies also conduct consumer research as well as market research. Marketing consultancy agencies are separately organized for conducting marketing research and to provide information to the company.
However, these organizations too have their own benefits and limitations.
Advantages of Professional Agencies
1. Expert Staff
The professional agencies generally appoint highly qualified and expert staff to conduct research activities. Hence the minimum standards of quality of research activities will be maintained. And the information provided by them is also more reliable.
2. Specialization
The professional agencies are specialized in various areas. The specialization of various fields of marketing research is one more benefit provided by the professional agencies. Companies who are producing different commodities will have to face different marketing problems. The specialized professional agencies will provide proper services to the companies.
3. Macro Level Study
A professional agency deals with various problems of marketing and its related problems. The study and observations of these agencies will consider the whole concept rather than limited concept. Hence the conclusions and suggestions would be more practical and rational.
4. Timely Information
Professional agency works on professional lines i.e. to conduct research activities like collecting data, analyzing it and deriving conclusions etc,. All these activities will be conducted and timely information is provided by professional agencies. 131
5. Sufficient Freedom
Professional agencies are free from the constraints like financial, administrative, information etc,.Hence, the agencies work with freedom and the conclusions derived would be genuine.
6. Network
Professional agencies have good communication and information network. It contributes gathering relevant information in time which enhances the quality of research activities.
Disadvantages of Professional Agencies
1. Lack of Personal Touch
A company’s profitability not only depends on professional attitude but also personal attachment. But professional agencies work on only professional lines.
2. Higher Consultancy Fee
A professional agency’s consultancy fee is generally high which may not be affordable by the small companies.
3. Reputation of Agency
The professional agency selected for conducting research activities should be reputed. Otherwise the agencies will misguide the companies.
4. Use of Data
The data used by the professional agencies whether it is primary or secondary data also decides the quality of research activity.