Competitive Intelligence, how to get it and how to use it to grow your business .

1. Competitive Intelligence, how to getit and how to use it to grow your business. OCBA Presentation Rob Garber – 12-15-11

2. Talking Points • Why this is an essential part of your marketing and business plans • Forces that drive competition • Competitive overviews, company profiles, ongoing tracking • What kinds of things do you need to know about your competition? • Analysis – the most important element – the added value • Strategic vs. tactical CI – the difference and why both matter • Sources of intelligence - gathering CI legally and ethically, • Making informed decisions – about what? • Communicating with the market place – Insight and Value Prop Rob Garber - OCBA CI Presentation

3. CI – Essential to your planning • How strong is the competition? • How many other companies are out there? • How strong is their position in the market? • What are barriers to entry for new companies? • How do they differentiate themselves? • Strengths and weaknesses of primary competition • How will they react to your moves? • How will you react to theirs? • What is your competitive strategy? • Low cost producer – just as good, for less • Differentiated offering(s) – The only one of it’s kind • Focus – segments, target markets – Number one amongst small companies Rob Garber - OCBA CI Presentation

4. Forces Driving Industry Competition(Porter’s 5 forces that affect competition and profitability) Potential Entrants Threat of new entrants Industry Competitors Rivalry Among Existing Firms Suppliers Buyers Bargaining power of buyers Bargaining power of suppliers Substitutes Threat of substitute products or services *Competitive Strategy, Michael E. Porter, 1998 ed. Rob Garber - OCBA CI Presentation

5. Competitive templatesInitial overview (can be updated for tracking purposes) • Company profiles • Strategy – how they intend to win, what’s their approach, what’s the goal (not financial) ex. Be the leading supplier of laptop computers. • Position – overview of what they do, who they are, history, top execs, what they sell • Financial performance – VC funding, IPO, if public recent performance, market cap, acquisitions, pricing if available. • Background – Top execs, strategies they are pursuing, current developments. • Technology – High level discussion about the tech that the company’s products are based on that make it unique, or give it competitive advantage. • Offerings – Summary of how the company packages and brands its offerings (products or services). Functional characteristics, advantages and drawbacks. • Partners – Partnering strategy, list of partners. • Analysis – The most important part of the exercise. Thinking about how and/or should we compete. What are important considerations. • Strengths and weaknesses • Possible next moves – educated guesses on likely directions, anticipate possible business activities and strategies. • Implications and recommendations – What does it mean to us, what should we do? Rob Garber - OCBA CI Presentation

6. Competitive templatesTrend reports • Monthly • Brief (2 to 3 pages) fast read format. (Can use hyperlinks in e-format). • Identify the trend in headline, with facts and figures to support why this is a trend. • Bulleted “proof points” that are documented recent events that support the observations. • Implications and recommendations. Separates “information” from “intelligence” which is much more valuable. • Quarterly • This is usually a roll up of the previous monthly reports with updates, can be more extensive (10 to 15 pages). More formal report. • Includes an executive summary in the beginning for fast overview. • Also, contains brief “snapshots” of competing companies that have come up on the radar, and can form the basis of a deeper dive profile. Rob Garber - OCBA CI Presentation

7. Strategic vs. Tactical CI • Strategy focus usually feeds top Execs (decision makers) and Marketing • Higher level overview of competitive strategy with more on market dynamics, financial performance, external communications (campaigns, PR), merger / acquisition and partnering activities, new products / markets. • Tactical focus is more for sales and product management • More product oriented (customer orientation of course) – selling against the competition, feature differentiation, account instead of market orientation. • How can sales & service approaches and product features be improved. Increasing the “win” percentage. • Reports include “Battle cards”, “Cheat Sheets” comparison summaries, and quick read trend reports for use by field. Rob Garber - OCBA CI Presentation

8. Sources of Intelligence • Sources can be primary (quantitative or qualitative) and secondary (existing published data and info) • Secondary search should be done first. You may have enough information, or if you plan a primary study, it will help you to ask the right questions, and maximize your efforts. • Secondary sources can include the obvious Google search in addition to: • Newspapers & magazines including trade / industry press • SEC info if your competitor is publicly held • Analyst reports • Speeches • Thorough search through company websites (compete.com to see traffic stats) • LinkedIn – people and company info • Twitter – can be searched various different ways • Job postings (indeed.com) what skills are companies looking for? • Use Wordle on a competitors web site to see what they’re focused on. • Slideshare.net – presentations on just about anything. • Your sales force – who are they running into? • Primary research focuses on competitive questions • Rating the competition • Win loss studies Rob Garber - OCBA CI Presentation

9. Rob’s Wordle Rob Garber - OCBA CI Presentation

10. Marketing Communication • Delivering your messages to the market. The creative brief is how the best ad agencies create high impact advertising. • Organizing a blueprint, getting the right insight, making the right promise, getting the creative team on track. • The objective of the ad – what action do we want to inspire? (purchase path) • The target, individuals, what they think, how they act, what’s guiding their behavior? • The insight – the most important belief, perception, attitude, motivation or need that drives the target’s behavior. • The promise – AKA value prop. Single minded answer that will solve the problem expressed in the insight. • Support – Proof that the promise is believable. • Call to Action – What will be used to move the target closer to purchase? • Tone of voice, brand personality • Agency deliverables – what media will be used, cost & timelines • Success metrics Rob Garber - OCBA CI Presentation

11. Take Aways • Do your homework on the competition • Make it an important part of your planning activity • Use it to develop a winning competitive strategy • Keep your eye on the competition on an ongoing basis • Understand your customer’s motivations, and send them the right messages about why you’re different and better. • Have a great holiday season, and a happy successful 2012! Rob Garber - OCBA CI Presentation

12. Contact me if you have questions, or need more info Rob Garber RHGARBER@VERIZON.NET 914-844-2560 (CELL) LINKEDIN - www.linkedin.com/in/roberthgarber Rob Garber - OCBA CI Presentation