- Tags : Marketing | Price of Marketing Consulting Services | Market Characteristics | Market Intelligence
Recent Price Trend - Marketing Consulting Services
The average price for marketing consulting services has been rising at an estimated annualized rate of 3.1% from 2014 to 2017. Successfully navigating a rapidly changing media landscape has become increasingly important for companies and, in response, marketing consulting services have become vital for many firms to gain a competitive edge. Thus, strengthening demand for this market’s services has largely driven price growth.
With a rapidly growing base of internet users, companies have been expanding their online presence. In the process, companies have been relying on marketing consulting firms to grow customer bases, whether through brand planning, user experience data analysis or other types of marketing consulting services. Additionally, as consumer spending has risen, companies have been allocating more of their budget for advertising, often employing marketing consulting firms in the process. Surging demand has been the core driver of price increases, which has weakened buyer power.
While average wages for marketing consulting firms have increased only marginally, wages as a share of revenue have been rising at a faster rate during the period. As companies have expanded the scope of their services and brought on more consultants, suppliers’ costs have grown. In turn, increasing costs have forced suppliers to impose higher service prices on buyers, further contributing to diminished buyer power.
However, prices have been kept in check by an increasing number of vendors entering the market, which encourages price-based competition. The fragmented nature of the market ensures that no one supplier can raise prices significantly without jeopardizing their market share, thereby placing downward pressure on overall prices. Low price volatility allows buyers to accurately anticipate costs without the risk of rapid shifts in price. Even so, in light of forecast future price growth, buyers are encouraged to engage in contracts sooner than later to lock in current prices.
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