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Copyright 2002-2009, Sequent Learning Networks, Inc. PM0101 Jul 09
The Market Drives Your Business
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Steven Haines - Resume
Founder: Sequent Learning Networks (2001) A trainingand organizational advisory services firm based in NYC
Mission: improve organizational efficiency and alignment so thatcompanies can improve the success of their products in chosen markets
Author: The Product Managers Desk Reference
Global marketing and product management positions inmajor corporations over twenty-five years Defense electronics (Loral)
Consumer goods (Maidenform)
Health care and medical devices (WR Grace Natl Medical Care)
Telecommunications & technology (AT&T Bell Laboratories, Lucent)
Software & technology (Oracle)
Extensive Product Management best practices research
Adjunct professor, Rutgers University (twelve years)
Active membership in PDMA, MENG, CMO Council,NY Product Mgmt Assn, and other organizations
Contact: [email protected]
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Objective
To provide you with asolid context formaking the marketyour primary focus
To help you identifythe work activitiesneeded to properlyresearch your market
space
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Whats needed to be a business leader. . .
. . . or, to lead in business?
Be entrepreneurialin spirit and character
See the end gameand get others to see it, too(strategy, vision, future)
Be committed, determined and goal directed
Exude passion and commitment (which helpsmotivate others)
Detect the nuances of the marketplace to identifyopportunities
Understand constantly shifting customermotivations
Act with agility and adapt as needed at the speedof your market
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Market research
YOUR GOAL is to UNDERSTAND HOW TO: Characterize customers
Evaluate evolving customer needs and motivations
Detect trends
Evaluate industry issues
Analyze and challenging the competition
Create and maintain a market summary so youre nevercaught off guard
Market research is ongoing effort that takes place at all levels ofthe organization, influencing strategic and tactical planning, aswell as a variety of guiding controls
Market research provides the data that can be transformed intouseful insights on which you can build actionable business,product, and marketing plans and programs
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Why do we care about the market?
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Because the money is in the market!
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Customers
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Customers and segments
Customers are divided into groups (segments) andsubgroups (targets)
Each segment or target group can/should be sized
based on: Unique needs, buying habits, motivations, and preferences
Overarching motivations:
B2B customer want to make money, save costs, and improvetheir own profitability
B2B and B2C customers usually want to be efficient (save time,make life easier, etc.)
Revenue and profit potential becomes part offorecasts for new products and enhancements Each group has value to the firm, either as a current customer, a
prospective customer, or even as a customer of a competitor
Marketing and promotional programs can be devisedthat stimulate demand (and revenue) from givenmarket segments
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External
Advisors
Internal
Advisors
Lines of
Business
Executive
Teams
ProcurementEnd
Users
Finance
CxO
DecisionProcess
B2B customer segments are dynamic
Most decision makers
have little interest infeatures or functionality
They care about impacton the business, ROI, and
other metrics
Customers dont want vendors they want partners who understand their business
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You create an experience for your customers
Great products dont just happen
Defining or articulating customerissues, problems, or needsrequires insight into how theirproblem gets solved
This helps in defining productfunctionality, features, attributes, or
designs
Business owners must:
Think of the solution based onsolving the customers problem (or
the markets problem) Define solutions that impact:
How the customer will act, or
What the customer will do
differently
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How do you find out?
Qualitative Research and VoC
Ideation via formal sessions/brainstorming
What do we know now? What have we seen?
Purposeful, planned customer or field visits
Interviewing, focus groups, customer councils
Learning customers business operations What they do
How they do what they do
Quantitative Research Surveys, questionnaires, report cards
Census data
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Industry & Competition
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Industry and competition
Industry
The arena in which customers and competitors meet
Paying attention helps you capture trends andpotentially, capture revenue
Tends to shift over time based on a variety of influences
Competitors
Vie for the business of customers Split the market with a host of other providers/suppliers
Paying attention helps you capture trends andpotentially, capture revenue
May narrow the available market for products
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Industry assessments with P.R.E.S.T.O.
Political Current political systems within your geography
Global or regional conflict
Regulatory Governmental and legal regulations regarding your products and services (e.g.,
telecommunications, cable TV, pharmaceuticals, etc.)
Economic Indicators of prosperity or downturns
Employment or other indicators which might help understand spending patterns Growth rates, savings rates, inventories, etc all contribute toward
understanding willingness to spend
SSocial and cultural Core consumer values, e.g., saving money, lifestyle goals
Technological Understanding the limits of the companys core technology
Understanding emerging technologies
Other influences
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Industry research practices
Identifying importanttrends
Determining product fit
Reinforcing companyfit within the industry
Providing perspectivefor strategic and
tactical alternatives
Why industry analysis is important? Sources to secure the data?
Read industry publications/journals
Attend or speak at industryassociation conferences
Participate in professionalassociations
Cultivate good relationships with
customers Observe or read government data or
reports
Review stock market analyst reports
Read newspapers (e.g., WSJ, FT,
etc.) Read business periodicals
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P.R.E.S.T.O. Industry profile tool
Why is it important and what is theimplication?
What is happening?
P
R
E
S
T
O
SWOT
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Competitive assessments
Important questions to ask Who are your competitors?
What products do they sell, and into which markets?
How do they market and sell?
How do they position their products?
What value propositions do they assert?
Who are their partners?
How do they price? Promote? Distribute? Are they hiring? Firing?
Who do they compete with?
Competitive financial profiles how are they doing?
Generally what have competitors been doing,what do you think theyre going to be doing in thefuture, and what you are going to do about it?
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Sizing up the competitors value chainsHow they meet the needs of their customers
Channels
Operations-
SupplyChain
Sales andMarketing--
Alliances
CustomerService
Technology and Transactional Systems
Human Resources Management
General Administration
Primary Activities and Costs in Product/Service Delivery
Productionor
Development
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Simple competitive analysis template
What shouldyou do toestablishcompetitive
advantage?
What are theweaknesses ofthe competitor,their products,
and positioning
What is thestrategy of thecompetitor, theirproducts, and
their positioning
Estimatedmarket share(and supportingassumptions)
Name ofproducts
Name ofcompetitor
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Comparing competitors
Market Share
Operational Efficiency
Technological Competence
Employee Morale
Economies of Scale
Distribution Channel Advantage
Pricing
Product line Depth
Financial Resources
Sales Force Effectiveness
Supplier Advantage
TOTALS
Patents/Trademarks
Use of Technology
Product Line Breadth
Comp 5Comp 4Comp 3Comp 2Comp 1Your Co
Suggest rating scale of 1 (weak) to 10 (strong). Sum all scores to see where you stand
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Creating a summary market profile
In many documents (Business Plans, Business Cases,Marketing Plans, Launch Plans, PRDs etc.) you will need to
have a market profile ready to go about what is happening inthe market. Your posture as a business owner is to have anAlways On mindset!
You are always going to be collecting data so that you canunderstand market size, segments to pursue, competitors tochallenge, and you desired market share or focus
The market profile considers the entire marketplace: industry,competitors, and customers and/or segments.
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Composing the market story
Customer information
_______________
_______________
_______________
Industry information
P)_______________
R)_______________
E)_______________
S)_______________
T)_______________
O)_______________
Competitor information
_______________
_______________
_______________
Market Story
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
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Summary: the importance of market research
Research validates and guides: Product or solution content
Competitors to challenge Market segments and customers to pursue
Marketing mix elements to consider
Business Plan content
Your ability to be more agile in a competitivemarket
Creation of solid, cohesive sales trainingand marketing programs
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Thank you
Steven Haines