Report Summary--Market Research Vendor Management Excellence: Evaluating the Use of Exclusive Vendor Partnerships. Contact me to view the full report.

1. Market Research Vendor Management
Excellence: Evaluating the Use of
Exclusive Vendor Partnerships
Best Practices, LLC
REPORT SUMMARY

2. Table of Contents
PROJECT BACKGROUND
Project Overview
Benchmark Class Profile
Key Findings
STUDY FINDINGS
Vendor Partnership Benchmarks
Outsourcing Levels
Number of Vendors Used
Common Contracting Models
Exclusive Vendor Partnerships
Usage Patterns & Mapping
Levels Contracted
Study types Contracted
Future Use
Continued

3. Table of Contents, 2
Evaluating Exclusive Vendor Partnerships
Goals & Benefits
Drawbacks
ROI & Measurement
Managing Exclusive Vendor Partnerships
Resources & Account Management
Collaboration with Marketing Teams
Penalty & Incentive Systems
Training
Employee Engagement
Perspectives from Companies Not Contracting Exclusive Vendors
Appendix: Insights from Executive Interviews
About Best Practices, LLC

4. Study Objective & Research Methodology
This benchmarking research study examines vendor management strategies to help bio-
pharma market research groups provide support and value that aligns with broader
organizational goals and commercial objectives. In particular, this research explores
trends and efficiencies in the use of exclusive vendor partnerships.
Research Objectives: Key Topic Areas Probed:
• To uncover current field data on a series of key This benchmarking research, conducted
vendor management benchmarks, including through a field survey instrument and a
outsourcing levels, number of vendors used,
series of interviews with selected
and critical factors driving various vendor
participants, delivers performance metrics,
contracting models
insights, and lessons learned on:
• To gather innovative approaches and
executive insights into the evolving role of the
bio-pharma market research function from both •Vendor management models for primary
a tactical and strategic perspective market research
• To adapt lessons that will enable market •Vendor contracting strategies
research leaders to plan and implement •Streamlining the market research function
strategies for controlling costs, avoiding •Maintaining high levels of research quality
common mistakes, and improving quality on
•The benefits and drawbacks of exclusive
primary market research through vendor
vendor partnerships in the current
management excellence
economic and industry landscape
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5. Universe of Learning: Companies Participating in Study
Research participants included 37 market research executives and managers from 26
leading pharmaceutical, biotech and medical device companies. All study participants
contributed data through a field survey. Representatives from ten benchmark organizations
provided additional insights through deep-dive interviews.
Participating Companies:
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6. Most Participants Serve at Director Level or Above
Research data and insights were contributed by a seasoned class of respondents, from
vice presidents to managers. The vast majority of respondents serve at the director
level or higher.
Research Participant Job Titles Include:
• Vice President, Oncology • Director, Marketing
• Executive Director, Market Research • Director, Sourcing & Supply Management
• Executive Director, Business Analysis • Director, Commercial Effectiveness
• Senior Director, Market Research (4) • Associate Director, Market Research &
• Director, Market Research (11) Analysis
• Director, Marketing Research • Deputy Director, Market Intelligence
• Director, Market Analytics • Senior Manager, Market Research
• Director, Business Analysis • Manager, Market Insights
• Director, Business Intelligence • Manager, Market Research (6)
• Director, Managed Markets • Manager, Marketing Science
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7. SAMPLE: Key Findings and Insights
The following key findings and insights emerged from this study.
• Account management frequently occurs at the market research Director level:
Exclusive Vendors are most often managed at the account level by a market research director,
while a market research manager most often serves as a primary point of contact. EVs also tend
to work remotely and only rarely ever interact directly with marketing or brand teams.
• Companies not using Exclusive Vendors express several different reservations:
Respondents cited a wide variety of rationale for not using an EV for market research, including:
• The need to maintain competitive bidding on projects, particularly ones with large spends
• The belief that EV contracts undermine vendor innovation
• The view that no one vendor excels across multiple types of studies
• The need for flexibility and the ability to change suppliers as needed
• The difficulty in implementing an EV partnership model
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8. Vendors Most Often Hired on a “Project-by-Project” Basis
Most benchmark organizations adhere primarily to one of two main vendor contracting
models, wherein they hire external vendors either: 1) on a project-by-project basis or 2)
from a list of preferred vendors. For the benchmark class on the whole, Exclusive
Vendors conduct only a small percentage of a company’s market research.
Q. What percentage of your primary market research projects are governed by the following
vendor contracting models?
3% “Exclusive Vendor”
Contracting Model
55%
42%
“Project-by-Project”
Contracting Model “Preferred Vendor”
Contracting Model
(n=23)
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9. Drawbacks Include Lack of Innovation, Resource Efficiencies
Despite gains in cost efficiency, the Exclusive Vendor contracting model does not appear
to be a panacea for all market research challenges. Half of respondents deemed “lack of
innovation” and “lack of FTE efficiencies” to be among the difficulties resulting from
using an Exclusive Vendor.
Q. Which of the following problems, if any, did your company experience as a result of
moving to an Exclusive Vendor for market research? (Check all that apply)
Lack of vendor innovation 50%
Lack of resource/FTE efficiencies 50%
Inability of vendor to deal with
different aspects of the business 33%
Voices from the Field:
Minimal/No cost savings 17%
“We've vetted them [EVs]. Through historical experience we know
the people, we know the quality of the work. We know they are not
Implementation/Operational ridiculously expensive and even if they are we hope that we are
difficulties 17% contracting to get slightly better pricing from them. And so the rest
of the [EV] process is just quality control.
You know the level of experience and amongst the brand teams or
Vendor complacency 17% whoever is the end user…they know too or at least have heard of the
vendor repeatedly and that gives a level of confidence…But we
focus on impact, rather than a hard ROI measure. The question we
Inability of vendor to adequately ask is: ‘Is the market research work 'moving the needle?’ Is it
support internal clients 0% actionable and insightful or will it just sit on the shelf.’”
-Director, Insights & Innovation
(n=6)
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10. Training Approaches are Geared toward the Pragmatic
Since Exclusive Vendors are frequently contracted to perform what some participants called
“lower level” market research activities, it is not surprising that their training tends to be more
pragmatic than strategic in nature. As a result, vendors are often trained remotely, with more
emphasis on proficiency with internal processes (83%) than on areas like brand strategy or
therapeutic area knowledge (33%).
Q. What types of training does your company employ when onboarding an Exclusive
Vendor? (Check all the approaches your company uses)
Training Areas:
Overall Company Orientation:
Company and business profile: 0%
On-site company orientation: 33% Internal Market Research process
orientation: 50%
Therapeutic area: 33%
Virtual company orientation:
(phone-based, technology-based, Brand strategy: 33%
downloads) 67% Required proficiency with internal
processes based on company-
vendor relationship: (e.g., Purchase
(n=6) Order generation) 83%
Compliance (e.g., adverse
events) 33%
Voices from the Field:
“When you've got a vendor coming on board there're certain protocols to know, from purchase orders to contracting to the invoicing
process. So all that kind of training for the vendor is handled by a supplier management group to a certain extent. We supplement that by
reinforcing and helping communicate. And then there're very specific protocols in terms of how we need to conduct research with formal
training and refresher courses for the vendors.”
-Manager, Market Research
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11. Respondents Predict Sustained, Expanded Use of EVs
Most respondents anticipate a similar or even greater degree of Exclusive Vendor use in the next
few years. Half of participants predict the same level of use in the next 12 – 36 months, while 33%
foresee expanded usage in the future, where the pressure to reduce costs (in this case via
consolidated contracting) figures to remain a chief concern for pharma market research groups.
Q. How do you anticipate your company’s use of Exclusive Vendors for market research
changing in the next 12 - 36 months? (Choose one)
Expanded use of EVs for primary market research: 33%
Same use as now: 50%
Decreased use of EVs in favor of preferred vendor use: 17%
Decreased use of EVs in favor of project-by-project vendor use: 0%
(n=6)
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12. About Best Practices, LLC
Best Practices, LLC is a research and consulting firm that conducts work based on the
simple yet profound principle that organizations can chart a course to superior economic
performance by studying the best business practices, operating tactics, and winning
strategies of world-class companies.
Best Practices, LLC
6350 Quadrangle Drive, Suite 200
Chapel Hill, NC 27517
www.best-in-class.com
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