training can propel market researchers from order-takers to trusted business advisors
DESCRIPTION
Market Research and Analytics organizations increasingly serve expanded global regions, supporting complex product portfolios with brands spread across lifecycle stages in diverse country marketplaces. This creates a pressing challenge: how best to efficiently and effectively train, educate and develop skilled Market Research professionals who can serve and inform the global enterprise.Best Practices, LLC conducted this cross-industry benchmarking study to probe critical experiences, winning strategies and important resource trends regarding how best to develop and deploy Market Research Training and Development in today’s increasingly complex global marketplace with ongoing resource constraints.As resources shrink, companies must develop organizations that can turn out high performing market researchers effectively and efficiently, regardless of their location, specialty or service area. Market Research leaders can use this study as a reference point in future budgeting and strategic planning.TRANSCRIPT
BEST PRACTICES,®
LLC
Best Practices, LLCStrategic Benchmarking Research
From Classroom to Boardroom:Training Can Propel Market Researchers
from Order-Takers to Trusted Business Advisors
BEST PRACTICES,®
LLC
Table of Contents (of full report)
Executive Summary 3 Research Overview 4
Participating Companies 5
Key Findings 6
Key Trends Observed 9
Market Research Must Undergo Transformation: Training Can Help 10
Market Research Skills Training 14
Effective Approaches & Tools 21
Increased Outreach Requirements Drive Training Differentiation 32
Program Sustainability Is High Priority in Time of Flat Budgets 40
Operations & Effectiveness 52
Case Examples & Proven Practices 57
Pitfalls to Avoid & Key Lessons Learned 61
Market Research Training Excellence 64
Verbatim Responses: Pitfalls, Lessons Learned & Best Practices 67
Appendix: Participant Demographic Data 75
2Copyright © Best Practices, LLC
BEST PRACTICES,®
LLC
Topics IncludedStudy Overview
Skills for which MR training is provided
Training Channels most effective for MR
Percentage of MR FTEs trained
Differences between MR training for headquarters vs. regional staff
Average MR training budget
Anticipated trend in budget levels for MR training in the next 12-24 months
Primary funding sources for MR training
Average # MR FTEs
Key Ratios:
Cost of training per FTE trained
Hours of training per MR FTE
Training spend as % of MR budget
Best Practices, Pitfalls & Lessons Learned
Research Objective: This cross-industry study investigates how Market Research (MR) organizations at leading companies are training staff effectively in today’s environment of increasing globalization and shrinking resources.
Research findings provide industry metrics that can serve as a reference point for MR leaders in future budgeting and strategic planning.
Methodology: Best Practices, LLC engaged 41 Market Research & Training leaders at 35 companies through a benchmarking survey instrument. In addition, research analysts conducted deep-dive executive interviews with six selected respondents to collect qualitative data and insights.
Research Project Objectives, Methodology & ResultsBest Practices, LLC conducted this cross-industry benchmarking study to identify best practices and innovative methods for developing Market Research training excellence while improving the function’s global outreach and holding down costs.
BEST PRACTICES,®
LLC
Participating Companies Represent Nine Industries
Benchmark Class:
Forty-one benchmark survey respondents from 35 companies participated in this study. Nearly half are directors, senior directors or vice presidents, and 78% are based in the United States. The participants represent nine different industries. About half work in Market Research, one-third in Marketing and the rest in other functions.
4Copyright © Best Practices, LLC
(n=41)
Pharma / Biotech / Medical Device 61%Consumer Products 10%Manufacturing 10%Energy 5%Finance / Banking / Insurance 5%Chemicals 2%Computers (Hardware, Software) 2%Information 2%Research 2%
BEST PRACTICES,®
LLC
Selected Key Findings
The following key Market Research trends were observed in this study.
The perceived value of the Market Research function is eroding at many of the participating companies, where market researchers may be seen as simply order-takers rather than strategic partners.
Training can help Market Research create value and earn recognition from its internal clients by developing the analysts to fill new roles as strategic partners who help drive business results.
Quantitative/technical skills are needed to build competent analysts whose work is accurate and trusted. Analysts also need insight development skills to improve decision support and consulting skills to help them evolve into strategic business advisors who partner with their clients.
Interviewed participants have begun hiring market researchers for consulting skills over quantitative skills and offering mentoring and specialized external classes in consulting to evolve technical-oriented analysts.
5Copyright © Best Practices, LLC
Perceived Value of MR Function Is in Decline
Training Can Play a Key Role in Restoring the MR
Function’s Value
Leading MR Programs Provide Tech Skills & Consulting Training
Partnership/Advisory Role for MR Is Top Objective of
Leading Teams
BEST PRACTICES,®
LLC(n=41)
39%
51%
49%
66%
37%
39%
51%
34%
44%
34%
41%
34%
61%
32%
46%
39%Market Research is viewed as a "trusted advisor“ to the business.
Market Research has a "seat at the table" for management planning.
Leaders turn to MR to discern future trends, issues & challenges.
Market Research has a "seat at the table" for decision making.
Market Research recommendations are usually implemented.
Market Research is an integral part of the Marketing team.
Market Research uses fact-based research toconstructively challenge management thinking.
MR findings routinely influence critical business decisions.
Market Research findings help shape going forward strategy.
Market Research Functions Evidence High Maturity LevelsThe operational maturity of Market Research functions in this study is high, with more than three-fourths agreeing with seven of nine maturity indicators in the survey. However, there is still room for improvement in getting a seat at the table for management planning and being viewed as a trusted advisor to the business.
Q9. How strongly do you agree or disagree with each of the following statements regarding the role and business impact of the Market Research function at your company? (Choose one.)
6Copyright © Best Practices, LLC
Market Research Role & Business ImpactTotal Agree:
100%
93%
85%
85%
83%
80%
76%
73%
71%
27%
22%
Somewhat Agree Strongly Agree
% Responses
BEST PRACTICES,®
LLC
Nearly 2/3 Expect Market Research Training Budgets to Be FlatOnly 19% expect to see any budget increases for Market Research training over the next 12-24 months, and another 19% expect funding to shrink. Most predict flat budgets for the function.
(n=32)
Q. In the next 12-24 months, what change, if any, do you anticipate regarding the level of funding your company will provide for Market Research training and development? If you anticipate budget change, specify the primary reasons.
7Copyright © Best Practices, LLC
Future Budget Trends Reasons for Budget Level Changes
(n=10)
Decrease:• “Access to available funds”• “Everything is cut”• “Loss of patents”• “Overall budget contraction”
Remain about the same:• “Limited growth but local/regional management is
supportive of ongoing training and development”
Increase:• “More emphasis on building a strong MR function”• “Organizational transformation currently in process will
likely include development of more formal MR training”• “Product launch”• “Significant training needs have been uncovered”• “Today training level is near to zero”
Increase <10%3%
Remain about the same, 63%
Increase >10% 16%
Decrease >10%13%
Decrease <10%6%
BEST PRACTICES,®
LLC
Technical Skills Are Primary Focus of Market Research TrainingFundamental MR technical skills are covered by training for market researchers at 77% of companies, while 62% train staff in using advanced methodologies. Project management is the most frequently offered management skill and oral presentation the most common of communication skills taught by benchmark participants.
Q11. Select the skills training topic(s) your market research colleagues receive training on. (Choose all that apply.)
8Copyright © Best Practices, LLC
Market Research Skills TrainingTECHNICAL SKILLS:
MANAGEMENT SKILLS:
COMMUNICATION SKILLS:
(n=39) % Responses
54%
38%
44%
56%
62%
77%
28%
56%
49%
26%
33%
Negotiation techniques
Report writing
Oral presentation
Moderating interviews
Leadership skills
Project management
Insight development
Forecasting
Secondary research sources & uses
Advanced methodologies (e.g.,conjoint, segmentation)
Fundamentals of Market Research
BEST PRACTICES,®
LLC
Training Offerings Must Balance Breadth and DepthOn average, market researchers receive company-sponsored training on six critical skill sets. Forty-five percent of respondents train market researchers on three to five skill sets. Prioritizing the most relevant skill sets for a company’s Market Research staff can help training programs balance the breath and depth of offerings.
(n=40)
Q11. Select the skills training topic(s) your market research colleagues receive training on. (Choose all that apply.)
9Copyright © Best Practices, LLC
Max 13
75th Percentile 7
Mean 6
Median 5
25th Percentile 4
Min 1
Number of Skills on which Training is Offered per Company
6 to 8 Skills, 28%
9 to 12 Skills, 18%
13+ Skills, 3%1 to 2 Skills, 8%
3 to 5 Skills, 45%
BEST PRACTICES,®
LLC
Classrooms Are the Most Heavily Used Training ChannelClassrooms are the top channel for training market researchers in management and communication skills and are just behind conferences as the most frequently used channel for technical training. Technical training inspires multiple approaches, with three different channels used by a majority of the benchmark class.
(n=39)
Q17. Which channels are used to provide training in each of the following skills categories? (Check all that apply.)
10Copyright © Best Practices, LLC
Training Delivery Channels UsedTechnical Skills: Management Skills: Communication Skills:
In-person/ corporate classroom 67% 64% 59%
One-on-one mentoring/ coaching 49% 44% 44%
Professional/ industry conferences 74% 33% 26%
On-line/ web-based modules 54% 28% 36%
On the job/ special assignment training 44% 36% 31%
Independent self-study 36% 33% 31%
Mobile applications (e.g., podcasts, webinars) 33% 18% 23%
University/ college certified MR programs 23% 21% 15%
Virtual/ electronic classroom 13% 8% 8%
BEST PRACTICES,®
LLC
One-Third Report Same Training for HQ & Non-HQ StaffOnly 17% of companies described differences in training offered to Market Research staff reporting into headquarters vs. other locations, while half were unsure whether differences existed.
(n=35)
Q29. Does the implementation or content of MR training vary between colleagues who report into a headquarters/ centralized/shared services Market Research function and market researchers who report elsewhere? How?
11Copyright © Best Practices, LLC
Training for Headquarters vs. Country Operations
How training is different....• “Driven by manager-identified requirements.”
• “Each country is responsible for MR training of its staff.”
• “No need to study cross country/currency analysis, regional or global level trends.”
• “Regional colleagues do not participate in annual two-week global MR training program.”
• “They don't get trained on online software or SPSS.”
Same, 34%
Different, 17%
Unsure, 49%
BEST PRACTICES,®
LLC
Best Practices, LLC6350 Quadrangle Drive, Suite 200
Chapel Hill, NC [email protected]
919-403-0251
About Best Practices, LLCBest Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics, and winning strategies of world-class companies.
12Copyright © Best Practices, LLC