Market Research is one of the functions in pharma that uses vendors extensively because of the many strategic questions – from positioning to branding – that Market Research groups are expected to provide insights on. This study examines vendor management strategies and, in particular, evaluates the use of exclusive vendor partnerships. In addition to providing key vendor benchmarks around outsourcing levels and number of vendors used, the study presents the benefits, problems and management approaches for exclusive vendor partnerships. There are also sections that present perspectives from companies not using exclusive vendor partnerships and insights from executive interviews.

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REPORT SUMMARY
Market Research Vendor Management
Excellence: Evaluating the Use of
Exclusive Vendor Partnerships

2. Table of ContentsTable 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, 2Table 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

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Key Topic Areas Probed:
Study Objective & Research Methodology
Research Objectives:
• To uncover current field data on a series of key
vendor management benchmarks, including
outsourcing levels, number of vendors used,
and critical factors driving various vendor
contracting models
• To gather innovative approaches and executive
insights into the evolving role of the bio-pharma
market research function from both a tactical
and strategic perspective
• To adapt lessons that will enable market
research leaders to plan and implement
strategies for controlling costs, avoiding
common mistakes, and improving quality on
primary market research through vendor
management excellence
This benchmarking research, conducted
through a field survey instrument and a
series of interviews with selected
participants, delivers performance metrics,
insights, and lessons learned on:
•Vendor management models for primary
market research
•Vendor contracting strategies
•Streamlining the market research function
•Maintaining high levels of research quality
•The benefits and drawbacks of exclusive
vendor partnerships in the current
economic and industry landscape
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.

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Participating Companies:
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.
Universe of Learning: Companies Participating in Study

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Research Participant Job Titles Include:
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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.
• Vice President, Oncology
• Executive Director, Market Research
• Executive Director, Business Analysis
• Senior Director, Market Research (4)
• Director, Market Research (11)
• Director, Marketing Research
• Director, Market Analytics
• Director, Business Analysis
• Director, Business Intelligence
• Director, Managed Markets
• Director, Marketing
• Director, Sourcing & Supply Management
• Director, Commercial Effectiveness
• Associate Director, Market Research &
Analysis
• Deputy Director, Market Intelligence
• Senior Manager, Market Research
• Manager, Market Insights
• Manager, Market Research (6)
• Manager, Marketing Science

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• 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
The following key findings and insights emerged from this study.
SAMPLE: Key Findings and Insights

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Vendors Most Often Hired on a “Project-by-Project” Basis
(n=23)
Q. What percentage of your primary market research projects are governed by the following
vendor contracting models?
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.
3%
42%
55%
“Project-by-Project”
Contracting Model “Preferred Vendor”
Contracting Model
“Exclusive Vendor”
Contracting Model

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Drawbacks Include Lack of Innovation, Resource Efficiencies
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)
(n=6)
Lack of vendor innovation
Lack of resource/FTE efficiencies
Inability of vendor to deal with
different aspects of the business
Minimal/No cost savings
Implementation/Operational
difficulties
Vendor complacency
Inability of vendor to adequately
support internal clients
50%
50%
33%
17%
0%
17%
17%
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.
Voices from the Field:
“We've vetted them [EVs]. Through historical experience we know
the people, we know the quality of the work. We know they are not
ridiculously expensive and even if they are we hope that we are
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
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 ask is:
‘Is the market research work 'moving the needle?’ Is it actionable
and insightful or will it just sit on the shelf.’”
-Director, Insights & Innovation

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Training Approaches are Geared toward the Pragmatic
Q. What types of training does your company employ when onboarding an Exclusive
Vendor? (Check all the approaches your company uses)
(n=6)
Overall Company Orientation:
On-site company orientation: 33%
Virtual company orientation:
(phone-based, technology-based,
downloads) 67%
Training Areas:
Company and business profile: 0%
Internal Market Research process
orientation: 50%
Therapeutic area: 33%
Brand strategy: 33%
Required proficiency with internal
processes based on company-
vendor relationship: (e.g., Purchase
Order generation) 83%
Compliance (e.g., adverse
events) 33%
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%).
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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Respondents Predict Sustained, Expanded Use of EVs
Q. How do you anticipate your company’s use of Exclusive Vendors for market research
changing in the next 12 - 36 months? (Choose one)
(n=6)
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%
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.

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Best Practices, LLC
6350 Quadrangle Drive, Suite 200
Chapel Hill, NC 27517
www.best-in-class.com
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.
Link for Report: Evaluate the Use of Exclusive Vendor Partnerships