stephen haines dec 09

8/14/2019 Stephen Haines Dec 09

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Copyright 2002-2009, Sequent Learning Networks, Inc. PM0101 Jul 09

The Market Drives Your Business


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Copyright 2002-2009, Sequent Learning Networks, Inc.Page 2

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

[email protected]

stephen haines dec 09

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