Market research is necessary for survival and success in the business world.
Whether you’re kickstarting a start-up or investing in a new project, you must determine how much you should and can spend on market research.
You’ll need to consider various factors to set an appropriate budget that’ll meet your needs without underspending or overspending.
Every company is different and requires more or less marketing efforts, so there’s no set expense to how much your market research will cost.
Based on what you’re trying to do, research will likely cost a different amount each time that you do it, however, there are a few helpful ways to determine a budget that will get you the most return on your investment.
Market Research Spend
Here are a few tips on how to budget your market research effort to determine the cost that fits your needs:
Determine an Overall Budget for the Project
Whatever project that you’re working on requires an overall budget in itself.
Before you decide how much you want to spend on your market research, you must decide how much you’re willing to spend on the overall project.
Once you decide on your project budget, you should allocate an appropriate percentage to your market researching efforts.
The percentage should be a reasonable portion of your budget, however, it’s easy to underspend or overspend.
For example, if your overall budget is $250,000, don’t expect to get all of your answers out of one $5,000 analysis report. On the contrary, you don’t necessarily need to invest $100,000 in research either.
Custom Research May Be Your Go-To
If your internal data doesn’t answer all of your questions, you’ll need to commission custom research to be done for you. Make sure that you adjust your timeline and budget accordingly, as custom projects can be time-consuming and cost up to $50,000.
While your costs increase, your gains may be more substantial as well.
Custom research reports are designed to provide you with specific answers particular to your industry and business. The data that you’ll receive out of a custom project will be as thorough as you need, which sometimes outweighs the extra costs to get there.
At Kasi Insight, we offer our clients the speed, agility, scalability, and innovation to provide them with answers that they're searching for economically and efficiently.
While market research can be time-consuming, Kasi Insight's capabilities go above and beyond standard market research practices to give our clients the industry insights that they need to prosper.
Set Realistic Expectations
Investing in market research doesn’t only cost money, but it also costs time.
It’s important to educate yourself on realistic expectations for what your market research price range can give you.
Educating yourself beforehand will help you find the right market research practice for your business’s budget and needs.
While every project is different and requires more or less work, these are the average costs of generic market research reports and what information they’ll provide you with:
Top Level Reports: $100 - $1,000
Top-level reports typically include basic industry information:
How large is the industry?
Who are the top companies in the industry?
Fundamentals and background information of the industry and how it got to where it is today.
Full Market Reports: $1,500 - $8,000 Full market reports are for businesses who need to familiarize themselves with a particular industry and they include:
Explanations of the market and its subcategories,
Metrics covering the market’s current state,
Future projections for market development,
Current trends and technologies,
Explanations of how a market will fluctuate over the next several years.
Product Detail Market Reports: $15,000 - $ 35,000 Product detail market reports cover:
The performance of the current market,
Specific market values,
Trends of specific products/services in the industry within specific regions or countries.
Pharmaceutical manufacturers that want to understand how different drugs for the same illness are performing within each country that they’re sold in should invest in product detail market reports.
How Much Does It Cost for Market Research?
There’s no right answer for how much market research will cost your business.
However, there are a few ways to help determine an appropriate budget to give you the answers you need.
Remember to set an overall budget before you invest in market research because it may cost you more than expected.
Marketing experts recommend you spend 1 - 5% of your annual turnover to ensure that you're investing enough into your researching practices.
Once you set a budget and determine your custom research approach, the next step is to reach out to a professional company like Kasi Insight.
Contact our team today to explore how our consumer intelligence , brand intelligence, retail intelligence, and economic intelligence can empower your decision-making process. Win with confidence with Kasi insights https://www.kasiinsight.com/thehub
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