Information to Provide to a Marketing Agency for an Accurate Quote on the Cost of Quantitative Marketing Research:
- A brief overview of the market situation and the business objectives of your company.
- The goal and objectives of the marketing research.
- Target group.
- Geography of the research.
- Sample size.
- Preferred methods of data collection.
- Timeline for conducting the research/providing results.

Determine the company's specialization. Don't expect to find a company specializing specifically in your market, such as flooring, the restaurant business, office furniture, children's clothing, etc. These markets are not yet large and structured enough to provide a steady stream of orders that could cover the annual budget of even 2-3 medium-sized research companies. Therefore, industry specialization among research firms has not yet developed. The exceptions, which only prove the rule, are the pharmaceutical, perfume-cosmetic, media, and political markets.

However, specialization by methods and types of research is beginning to form. Some companies specialize only in quantitative methods (surveys, questionnaires, monitoring), while others focus solely on qualitative methods (focus groups, in-depth interviews, expert surveys, content analysis). Some specialize in telephone surveys, known as "call centers."

Companies specializing in qualitative research are generally not large, often comprising 5-7 permanent employees. Companies focusing on quantitative research typically have at least 15 permanent employees unless they are a branch of a large research firm. Large research companies conduct both qualitative and quantitative research. These large firms employ between 40-50 and 120-200 permanent staff, with annual turnovers exceeding 3 million dollars.

If a company specializes in focus groups, it should have the appropriate facilities and equipment (video cameras, VCRs, etc.) necessary for conducting such sessions. They should employ professional moderators (group discussion leaders) and professional recruiters (participants), as well as linguists and psychologists. If a company specializes in mass surveys, it should have field managers, programmers, and analysts on staff. There should also be teams of interviewers and the necessary software.

In a well-developed marketing research plan, control over various sources of error should be included.

General error represents the deviation of the true mean value of the variable of interest in the population from the observed mean value obtained through marketing research. For example, according to the latest U.S. Census results, the average annual income of the population is $75,871, whereas marketing research based on a sample survey reports an average annual income of $67,157.

Sampling error occurs because a specific sample is not fully representative of the population of interest to the marketer. Sampling error is the deviation of the true mean value for the population from the true mean value for the initial sample. For instance, the Census data shows the average annual income as $75,871, while results from a sample survey based on a postal panel (considered quite accurate) indicate an average annual income of $71,382.

Systematic errors are unrelated to sample formation; they can be random or non-random and arise from various causes, including errors in problem definition, approach development, scaling, questionnaire structure, interviewing methods, data preparation, and analysis. Systematic errors consist of non-observation errors and observation errors.

Non-observation error occurs when responses cannot be obtained from some respondents in the sample. The main reasons for non-observation errors are refusals and the respondent being unavailable. Non-observation can lead to the actual sample differing from the initial sample in size or composition. Non-observation error is defined as the deviation of the true mean value of the variable in the original, planned sample from the true mean value in the final, actual sample. For example, the average annual income for the initial sample is $71,382, but only $69,467 for the actual sample, with both figures obtained from a postal panel survey.

Observation error arises when respondents provide inaccurate answers, their answers are incorrectly recorded, or they are misanalyzed. Observation error is defined as the deviation of the true mean value of the variable in the actual sample from the mean value obtained in the marketing research project. For example, the average annual income for the actual sample is $69,467, but according to the marketing research, it is only $67,157. Observation errors may be made by researchers, interviewers, or respondents. Researcher errors include errors in information replacement, measurement, population definition, sampling model, and data processing.

Information replacement error is defined as the deviation of the information needed to address the marketing research problem from the information found by the researcher. For example, instead of obtaining information about consumer choice of a new brand (needed to address the marketing research problem), the researcher obtains information about consumer preferences because it is difficult to obtain information on consumer choice.

Measurement error is defined as the deviation of the information sought by the marketer from the information obtained through the measurement process. For instance, although the marketer is interested in consumer preferences, they use a scale that measures perception more than preferences.

Population definition error arises from the deviation of the actual population size relevant to the problem from the population defined by the researcher. Properly defining the population can be far from trivial, as shown in the example of wealthy households.

Focus groups have several advantages compared to other methods of information collection:
1. Synergy: By bringing people together in groups, you obtain a broader range of information, opinions, and judgments than from individual respondents.
2. Snowball Effect: Focus groups often exhibit a "mass movement" effect, where one person\'s comment triggers a chain reaction among other participants.
3. Stimulus: Typically, after a brief introduction, respondents are eager to share ideas and express their feelings as the group discussion gains momentum.
4. Comfort: As group members share similar feelings, they feel more comfortable and are thus more willing to share their thoughts and emotions.
5. Spontaneity: Since participants are not required to answer specific questions, their responses can be spontaneous and unconventional, thereby more accurately reflecting their views.
6. Intuitive Insight: Good ideas often emerge unexpectedly within a group rather than in one-on-one interviews.
7. Expertise: Because multiple participants are involved in the discussion, the facilitator of a focus group must be a skilled specialist. Such expertise can be costly.
8. Diligence: Group interviews, observed by monitors, ensure more careful data collection. All information is recorded for subsequent analysis.
9. Flexibility: Group interviews allow for a more open and in-depth exploration of questions.
10. Speed: Since multiple participants respond simultaneously, data collection and analysis occur relatively quickly.

However, focus groups have five main disadvantages:
1. Misapplication: Data obtained from focus groups can be misinterpreted, as they are exploratory rather than conclusive.
2. Misjudgment: Data from focus groups are more prone to misjudgment compared to other methods. Focus groups are also sensitive to the client\'s and researcher\'s opinions.
3. Management: Conducting a focus group is challenging. There are few facilitators with the necessary skills. The quality of results largely depends on the facilitator’s ability.
4. Disorganization: The unstructured nature of responses complicates data recording, analysis, and processing.
5. Non-representativeness: Results from focus groups are not representative of the entire population, so relying solely on these results for decision-making is not advisable.