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

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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

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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

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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  ?

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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
• Procurement & supply chain
• Technology & innovation
• IT
• Operations
• Sales & Marketing
• Distribution
• Leadership
• Responsiveness and knowledge of customer call center representatives

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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?

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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?

• Overall versus competitors
• Liked features?
• Disliked features? (quantify dislike)
• Unnecessary features?
• 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:

• Turns their dislikes into likes?
• Has the new features they named?
• 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?

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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:

• Model?
• Product?
• Services?
• Technology?
• 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:

• To be in at all - short term? long term?
• For you to enter?
• For you to remain in?

Awareness and Perception

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How does the market view your company?  How do other stakeholders view you?  Have they got this right or wrong?

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Guiding Company Growth Strategies with Market Research

MARKET RESEARCH METHODOLOGIES

PRIMARY RESEARCH:

 One-on-One Interviews (a.k.a. executive interviews/in-depth interviews)

• By phone
• In person

 Quantitative Surveys

• Online (custom and off-the-shelf software)
• By phone

 Focus Groups

• In person – formal focus group facility
• In person – other locations, e.g. hotel conference rooms, client

boardrooms, campus conference centers

• 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%

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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 • Thompson Reuters (including Derwent, ISI, West)

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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,

• ptics, and lasers

Finding specialists in large global companies, like automotive acoustical engineers

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Secondary Research Considerations:

• #1: Educate yourself through secondary research before starting a primary

research project

• #2: Don’t invent the wheel (has 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

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DENTSPLY INTERNATIONAL: SOCIAL MEDIA MARKETING BY A B2B COMPANY

Source: Symmetri Marketing Group

Dentists are very social.

Today, with a strong focus on Facebook and YouTube, DENTSPLY Caulk* knows that social marketing is indispensable for driving interest, engaging dentists, and growing the business. In less than one year, its Facebook fans grew from 1,400 to over 8,000, and its Facebook page consistently garners 1,000 likes per month. And more tellingly, social channels have proven to be very cost-effective in getting dentists to sample and demo new products, a critical step in the path to purchase. Dentists and their support staffs are intent on enhancing clinical effectiveness and efficiency. The content they seek includes radiographs, procedural tips & techniques, videos, case studies, and more. With DENTSPLY Caulk, we strategize, plan and develop this content to meet month-over-month engagement goals and to have a measurable impact on leads, sales and share. This carefully curated social presence extends the reach of DENTSPLY Caulk’s sales organization by motivating dentists to engage, learn, share their comments, and request samples and demos. DENTSPLY Caulk also uses social media to drive traffic to its product microsites, further converting dentists into

• leads. On Facebook, this process is closely tracked using

Facebook conversion pixels.

 “Caulk” = dental composites, impression materials, adhesives, temporary materials, and

• ther materials used by dentists and dental labs to make dental products for patients.

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FACEBOOK

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YOU TUBE

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FROM THE BLOG

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Guiding Company Growth Strategies with Market Research

BREAKOUT GROUP CHALLENGE

You are the new V.P. of Marketing for CG Appliances North America. CG is a leading Korean brand of residential and commercial washing machines and dryers in the Asian

• market. CG has been very successful over the past 8 years selling basic residential

washers and dryers in the U.S. through retailers like HH Gregg and Best Buy. Based on this success, the company is now interested in marketing its line of commercial washers and dryers in the U.S. Your job is to advise CG on whether this is a good business opportunity or not, but before making this determination, you’ve decided it might be wise to do some market research. Breakout Group Assignments: (10 minutes to complete; 5 minutes each to present) GROUP 1: Come up with as many ways as you can to complete the following sentence. To succeed in the U.S. market, LG should not assume that … GROUP 2: List the basic information that LG should know about the current U.S. market for commercial washers and dryers before making any initial decisions. GROUP 3: You’re in charge of conducting 8 one-on-one interviews to better understand this market. Who would you interview (that might actually talk to you) and what do you hope to learn from them? GROUP 4: You’re in charge of finding out what customers in this market think of LG’s commercial washers and dryers. How do you propose doing this? GROUP 5: You’re in charge of figuring out how LG should distribute and price its commercial washers and dryers in the U.S. What kind of research would you do?