Which type of market research company should I use?

Market research company? Full service research firm? Specialized marketing research consultant? Which of these, or other types of marketing research firms are best for you? Today, market research companies, marketing research company subsidiaries of larger agenices and firms are crawling all over everywhere. Some are generalized across industries yet confine themselves to only certain methods, such as internet market research. Others use all methods. Some have in-house data collection facilities, others don't. There are marketing research consulting firms, then there are ad agencies, and more broadly based marketing consulting firms. Then there are data collection firms, usually specializing in one or two specific data collection methods for market research. Whew!

Which type of market research company is best for your marketing research needs? This is an important question. The table below will help with some insight as to which to select for your specific marketing research requirements.

Selecting the "right" market research company for your project.
Type		Advantages		Disadvantages
Full Service Firm, General across industries		Experience variety Several pros involved Uses many techniques (maybe)		May not know your industry well May have junior person running your project "Research mill"
Full Service Firm, Specific to industry		Knowledge in your industry		May have "canned" viewpoint it gives to you and all other clients Confidentiality issues
Narrow Service Firm (specializes in certain techniques)		Consulting approach Knows special tools well Many comparative studies using special tools High reliability of results due to above		"If your only tool is a hammer, every problem looks like a nail!" May not have big decision picture in mind. Other approaches may be needed for full solution
General Data Collection company (e.g. online surveys, focus groups, etc)		Lower cost, efficient Avoids consulting if you have in-house expertise Wide variability in quality		You must be involved in quality control; must know what you're buying May not be right technique. Does not have a big picture to your decision making agenda.
Broadline management consulting (e.g. Bain, McKinsey, Touche, etc)		Strategic viewpoint; big picture in mind Considers factors other than market research Credibility due to firm image; impact with CEOs		High cost. May get more/less than you need Tend to feedback your own viewpoint. Low internal involvement May not have high market research expertise Junior staff does work
Industry Specialized small management consulting firm		Strategic viewpoint; big picture in mind Considers factors other than market research Credibility due to firm image; impact with CEOs		May have lower costs May not be right technique. Limited market research tool kit Confidentiality issues.
Solo market research consultant		Augments your internal team Seasoned pro running project Close relationship; high internal involvement		May have limited tool kit. Quality driven by consultant's experience May not have strategic big picture viewpoint
Small decision-focused market research firm		Augments your internal team Seasoned pro running project; knows range of research techniques Close relationship; high internal involvement Focus on decision-making		Limited industry knowledge  Cost variable Thin staff compared to larger full service firms