This document discusses the differences between internal and external market research and when each approach is best. It notes that internal researchers have intimate knowledge of customers and products but can lack objectivity, while external researchers bring expertise and impartiality but without the customer insights. The best approach depends on the situation, with employee surveys, focus groups, and competitor analysis often best conducted externally, while consumer insights may benefit from internal research. A balance of internal and external perspectives can be valuable for product testing and research. The overall message is that both internal and external research have merits, and the optimal approach depends on the specific research goals and needs.

1. Internal vs External Market Research:
Is There a “Best” Approach?
“Marketing without data is like driving
with your eyes closed.”
- Dan Zarrella

2. Which is best?
Many companies would say that conducting
research is a job for external experts — people
people with no biases towards the company or
or motivations for it to succeed.
But what if the cost of hiring such a company is
is prohibitive or the process is too cumbersome?
cumbersome? Are there situations where
internal research is even more valuable?
The answer? It depends.

3. Internal vs. External at a Glance

4. Internal Research
• Employees are intimately familiar
both customers and products, so
they’re uniquely capable of
new, precise suggestions.
• This intimate familiarity also means
it’s more difficult for employees to do
more objective, analytical work.

5. External Research
• External experts can bring niche
expertise which some companies
have in-house, and their less-biased
analysis can deliver more objective
results.
• Beyond hiring experts, secondary
external data can also be useful.
research already compiled by others
your industry and is a fast and cost-
effective way of gathering insights
broader market trends.

6. The Best Fit for Each Situation

7. Employee Surveys

8. ✔ Best conducted externally: no bias, total
anonymity, niche expertise
With external researchers you get:
• Your employees’ totally honest, candid
feedback without fear of reprisal
• Specialist survey templates
• Credible results with no chance of
misleading interpretations

9. Focus Groups

10. ✔ Best conducted externally: more candid,
requires neutral facilitation
With external researchers you get:
• An impartial moderator who can lead
participants to explore and develop
their own ideas
• No influence on the participants or bias
from the moderators or analysts running
the focus group

11. Consumer Insights

12. ✔ Best conducted internally: unrivalled
knowledge of customers
With internal researchers you get:
• Researchers that best understand your
customers
• Reliable consumer insights that you can use
to improve the customer journey

13. Competitor Analysis

14. ✔ Often performed externally
With external researchers you get:
• Expertise and impartiality that is
otherwise difficult to get from a solely
internal prospective
• A fair analysis of your company and your
competitors

15. Product Testing & Research

16. ✔ May require a balance of internal and
external input
• With internal researchers you get:
• Intimate knowledge of the product and
its uses
• With external researchers you get:
• The possibility of results that contradict
your own beliefs about your product
• Extensive and ongoing effort without a
drop in quality

17. Marketing Research

18. ✔ Often performed by digital tools and
systems
With this you get:
• Detailed, perceptive analyses to guide
your marketing efforts
• Decreased need to outsource work
because of the wide availability of KPIs
and metrics

19. Whether you’re looking for feedback collection and
analysis or someone to manage the research for you,
SoGoSurvey can help!

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external-market-research-is-there-a-best-approach/

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