Presentation Transcript

1. Ch. 6: Market Research and Competitive Analysis

2. Market Intelligence Market Research requires adherence to: Research Design Data Collection Analysis and Interpretation Competitive Intelligence gathering is less involved In B2B marketing market intelligence is “knowing your market”
3. Exhibit 6-1 Portions of Market Intelligence Market Intelligence Market Research Competitive Intelligence
4. Market Research “Market Research is the systematic collection and interpretation of specific data related to the resolution of a specific problem or to satisfy a specific objective.”
5. Competitive Intelligence “The collection and informed interpretation of might appear at first as a number of random, unrelated events.”
6. Knowing Your Market One must understand the Customer’s: Technologies Products Markets and Customers Competitors Channels Buying Center and Buying Patterns Culture
7. Secondary Data “The results of a research effort developed for another reason, information compiled for other purposes, such as existing sales tracking information, as well as third party research.”
8. Primary Market Research “ The Collection of data directly from respondents in the population in question. The marketer determines what data needs to be collected and sets out to obtain it.”
9. Market Research Fundamentals Define the Problem and Research Objectives Design the Research Method to Achieve Said Objectives Collect the Data Analyze the Data and Draw Conclusions Present the Findings
10. Market Research Fundamentals: Define the Problem and Research Objectives What decisions will be supported? What information is needed to make these decisions? Should the type of research be exploratory or conclusive?
11. Market Research Fundamentals: Design the Research Method What respondents will be sought? What sampling method should be used? Design the research instrument
12. Market Research Fundamentals: Collect the Data Control the quality of data collection Enter data in database
13. Market Research Fundamentals: Analyze the Data and Draw Conclusions Apply appropriate analysis techniques Control for non-random error Draw appropriate conclusions, given the results and quality of the data
14. Market Research Fundamentals: Present Findings Apply information to decisions Present the findings
15. A thorough understanding of segmented markets supports the target decision process. Targeting Decision A thorough understanding of customer needs, reactions, and perceptions regarding features and attributes of the offer supports the design process. Design Decision Continuous information provides better decision-making at critical stages or points in the development process. Go/no-go Decision Implications of Types of Decision Support
16. Research to Support Targeting Decisions Good segmentation research is usually a two stage research design Exploratory research (determining a basis for segmentation) Conclusive research (dividing the sample into segments using the basis for segmentation)
17. No-go No-go X No-go X X Research to Support Go/ No-Go Decisions Idea Generation and Screening Business Case Analysis Launch go Third go/no-go point – does the market respond positively to the “almost finished” product (Beta test)? First go/no-go point – a quick assessment of market size, growth rate, fit of organization. go Concept Testing Initiative Development go Second go/no-go point – is there sufficient market interest? Market Test
18. Differences from Market Research in Consumer Markets Concentrated Markets Diversity of Interests in the Buying Center Technical Expertise Special Circumstances: Time Compression Uncertainty
19. Personal Interviews: Obstacles in Qualitative market Research Small number of prospective customers Size, complexity, and informality of Buying Center Unpredictability of Buying Center interactions Technical or complex nature of products Short time horizons for making decisions Lack of time for respondents to participate Heightened uncertainty about market dynamics
20. Improving Co-operation from Interview Respondents - 1 Understand respondent’s organization Reassure confidentiality of source Ask open-ended questions Have some follow-up questions ready Lead in with an easy question to break the ice Ask important questions early Don’t overstay your welcome
21. Improving Co-operation from Interview Respondents - 2 Ask essentially same questions of everbody Ask only what you need to know Take good notes Write up summary immediately after interview
22. The Six Sources of Competition Competitive Product Market Current Partners Substitutes Direct Competitors – Individually or as Value Networks Downstream Customers Upstream Suppliers New Entrants
23. Information to Collect on Individual Competitors Goals Strategies Capabilities Assumptions
24. Sources of Competitive Information The Internet Business and Trade Press Trade shows Competitors’ Communications Other Sources