CHARTING A STRONG PATH TO GROWTH: MARKET OPPORTUNITY ANALYSIS EDGE - PDF document

CHARTING A STRONG PATH TO GROWTH: MARKET OPPORTUNITY ANALYSIS EDGE MARKETING ROUNDTABLE Cleveland Clinic Business Operations Center 6801 Brecksville Road, Suite 160 Independence, OH 44131 January 10, 2017 Speakers: Evelyn Greene, EVP & Market Research Director The Research Investment, Inc. Susan Puflea, SVP & Managing Director - Brand Strategy Falls Communications 1

TODAY’S AGENDA: Evelyn Greene:  8:15-9:00: Using Market Research to Guide Company Growth Strategies  9:00-9:30: Breakout Groups: Market Research Challenge BREAK: 9:30-9:45 Susan Puflea:  9:45-10:30: Using Market Research for Branding Strategies  10:30-11:00: Breakout Groups: Branding Challenge 2

Guiding Company Growth Strategies with Market Research MARKET RESEARCH YIELDS FACT-BASED, ACTIONABLE MARKET INTELLIGENCE THAT SUPPORTS BUSINESS GROWTH STRATEGIES FOR EXAMPLE: STRATEGIES TO GROW REVENUES:  Sell more existing products or services to existing customers How?  Increase customer satisfaction  Bundle products & services  How else?  Sell new or improved products/services to existing customers How?  Improve your current model  Partner with customers to jointly develop products for their customers  ?  Sell existing products/services to new customers How?  Expand distribution network  Improve promotion & branding  ?  Sell new/improved products/services to new customers How?  Develop a better product than your competition  Make an acquisition to extend your product portfolio  ? 3

Guiding Company Growth Strategies with Market Research MARKET RESEARCH YIELDS FACT-BASED, ACTIONABLE MARKET INTELLIGENCE THAT SUPPORTS BUSINESS GROWTH STRATEGIES STRATEGIES TO INCREASE PROFITABILITY:  Reduce costs How?  Move towards lower cost sales & distribution channels  Seek lower priced sourcing for raw materials  ?  Increase margins How?  Transition towards specialty businesses  Focus on innovation  ?  Improve productivity/efficiency How?  Reduce energy, water, waste  Improve employee satisfaction  ? BENCHMARKING TO IMPROVE OPERATIONAL EFFECTIVENESS:  Implement best practices o Procurement & supply chain o Technology & innovation o IT o Operations o Sales & Marketing o Distribution o Leadership o o o o Responsiveness and knowledge of customer call center representatives 4

Guiding Company Growth Strategies with Market Research SUPPORTING STRATEGY WITH MARKET INTELLIGENCE GROWTH STRATEGY: Sell new products to existing customers HOW? Upgrade the current model CHOICE: 1. Tell the engineering department to go ahead with the upgrade - OR – 2. Gather information that supports or discourages the upgrade strategy and (if supportive) guides its implementation INFORMATION NEEDED – the key to defining this: Assume nothing.  A?  B?  C? 5

Guiding Company Growth Strategies with Market Research STRATEGY: Sell new products to existing customers by upgrading the current model INFORMATION NEEDED:  (Assume nothing): How likely are current customers to continue buying the current model? (2017? 2018?) Why/why not?  IF “NOT LIKELY ” is about the product itself (and not other factors) then:  How do current customers feel about the current model? o Overall versus competitors o Liked features? o Disliked features? (quantify dislike) o Unnecessary features? o New features wanted? (quantify nice…want….need)  Which features?  What makes each one liked/disliked/unnecessary?  How should disliked features be changed?  What new features should be added? Why? (What would they do/how would they work?)  Run ideas by them for new features you’re considering  Would they pay more for a new model that: o Turns their dislikes into likes? o Has the new features they named? o Has any of the new features we named?  (IF MAYBE OR YES): How much more (%) would they (or their customers) pay for each upgraded feature if added to the price of the current model?  Would they replace all or only some of their purchases of the current model with the new model? (IF SOME: What %?) HOW WOULD YOU CHANGE THESE QUESTIONS FOR NEW CUSTOMERS? 6

Guiding Company Growth Strategies with Market Research MARKET RESEARCH ANSWERS QUESTIONS LIKE: Customer Intelligence  What do customers want?  What are their unmet needs?  What are their key buying factors?  What is their buying process?  Will customers buy your new: o Model? o Product? o Services? o Technology? o IF NO:  Why not?  What would it take to change this? Competitive Intelligence  Who competes in this segment? (Who competes that meet these criteria?)  What do they offer?  What are their strengths & weaknesses?  What are their apparent strategies?  How successful are they? Why?  Why do customers prefer them over you?  How do their internal business functions compare to yours? Market Landscape  Market size, segmentation, growth, drivers, trends, players, outlook, threats  Is this a good market or market segment: o To be in at all - short term? long term? o For you to enter? o For you to remain in? Awareness and Perception  How does the market view your company?  How do other stakeholders view you?  Have they got this right or wrong? 7

Guiding Company Growth Strategies with Market Research MARKET RESEARCH METHODOLOGIES PRIMARY RESEARCH:  One-on-One Interviews (a.k.a. executive interviews/in-depth interviews) o By phone o In person  Quantitative Surveys o Online (custom and off-the-shelf software) o By phone  Focus Groups o In person – formal focus group facility o In person – other locations, e.g. hotel conference rooms, client boardrooms, campus conference centers o Online software  Participation/Observation (e.g. product testing) Primary Research Considerations:  #1: Who would know this?  Seeking qualitative information or quantitative data?  Number of respondents?  Is contact information available?  Cost  Statistical accuracy (for a future class!) Statistical margins of error for different survey sample sizes: Sample size: Est.margin of error: 50 +/- 14% 100 +/-10% 200 +/- 7.1% 300 +/- 5.8% 400 +/- 5.0% 500 +/- 4.5% 8

Guiding Company Growth Strategies with Market Research MARKET RESEARCH METHODOLOGIES SECONDARY RESEARCH: PRINT AND ELECTRONIC BUSINESS INFORMATION  Articles – Journals, Magazines, Newspapers  Companies and Industries  Countries  Directories  Statistical & Financial Data  U.S. Government  Market Research Major Fee-Based Information Services - from business & scientific databases and electronic journals to newsfeeds: “The Big Three” news & information aggregators:  Dialog (owned by ProQuest; targets business & government)  LexisNexis (Lexis for law firms; Nexis for businesses)  Factiva (owned by Dow Jones; business news) Other Majors:  EBSCO Information Services (specialty in healthcare)  Alacra, Inc. (specialty in financial institutions)  Hoover’s, Inc. (owned by Dun & Bradstreet, individual company information) Others: ACS Publications • AP Digital • Bloomberg, L.P. • Comtex News Network • Consumer Reports • CSA • D&B • Delphion, Inc. • ECNext • Edgar • Elsevier Science • FluentMedia • Gale Group • Ingenta • Internet Securities, Inc. • Media General Financial Services • OCLC, Inc. • OneSource Information Services, Inc. • Ovid • Questel • Orbit • S&P Capital IQ • STN International • Thom pson Reuters (including Derwent, ISI, West) 9

Guiding Company Growth Strategies with Market Research Major Social Media Search Tools:  IceRocket – blogs & Twitter  Social Searcher – Twitter, Google+, Facebook, YouTube, Instagram, Tumblr, Reddit, Flickr, Dailymotion, Vimeo  Social Mention – 100+ social media properties, including Twitter, Facebook, FriendFeed, YouTube, Digg, Google  Addictomatic – news, blog posts, videos, images Good Search Tools For Tracking Your Brand:  Social Mention – >100 social media properties  Mention – replaced Google Alerts  Talkwalker & Talkwalker Alerts – searches many sites for keywords & phrases  Hootsuite – social media management and brand conversation monitor covering many social media sites  PinAlerts - Pinterest Social Media Channels Used by B2B Companies: (primarily for marketing and lead generation)  LinkedIn  Facebook  YouTube  Blogs Recent research project using LinkedIn: Using LinkedIn, we found about 80 U.S. sales and marketing executives, managers, and staff, plus product managers, of our client’s major competitor . The information included each one’s job description and location. The end product laid out how the competitor ’s entire marketing function is organized, including for new products not yet announced, and how the company goes to market. LinkedIn for Research Sources: Finding global experts, like scientists who are growing crystals for superconductors, optics, and lasers Finding specialists in large global companies, like automotive acoustical engineers 10

Secondary Research Considerations:  #1: Educate yourself through secondary research before starting a primary research project  #2: Don’t invent the wheel (h as this research already been done by someone else and can I get it?)  Relevance of information: timeframe, geography, industry, product segment, data coverage  Reliable sources (original and quoted)  Sources covering a lot of material vs. piecemeal data points 11