Keppel Ltd. 1Q 2024 Business Update Presentation Slides
CIM Sussex- Innovate with intelligence May 2012
1. CIM Sussex
INNOVATE WITH INTELLIGENCE
Angela Dalrymple
Daniel Rowles
Thursday 24th May 2012
2. Our agenda
Welcome from the CIM Sussex committee - Laura Winter
Knowing your market better than it knows you – Angela Dalrymple
Coffee Break
Latest digital marketing techniques – Daniel Rowles
Q&A
2
3. CIM Sussex
Knowing Your Market Better Than
It Knows You
Angela Dalrymple – Presentation to CIM Sussex
Senior Teaching Fellow, Imperial College Business School
a.dalrymple@imperial.ac.uk
Director – Prodata Partners Ltd
angela.dalrymple@prodata-partners.com
Tel: 0845 054 9929
4. Angela Dalrymple
Senior Teaching Fellow in Marketing at Imperial College Business School
Associate Professor in Marketing with University of St Thomas Minnesota
Lecturer in Marketing with Portsmouth University, London School of
Business & Finance, University of Wales & Open University
Tutor on CIM Professional Diploma & Certificate courses with Oxford
College of Marketing
MA & BA (Oxford University), MBA (Liverpool), DBA (Edinburgh Business
School)
Senior Professional Member of CIM, MRS, IOD
Board Director & senior marketing roles with AT&T UK, Thomson Reuters &
PricewaterhouseCoopers
Director of Prodata Partners – market strategy & research consultancy
4
27 years’ experience in marketing and strategy
5. Discussion
Importance of knowing about ongoing market trends,
customer segments and competitor activities
Role of market research in effective marketing decision-
making and marketing plans
Smart applications of secondary and primary research
Free & no/lo cost sources of useful market research
5
6. Knowing Your Market
Well Is A Tough
Challenge
Reporter: ‘How do you sleep at night?’
CEO: ‘I sleep like a baby’
Reporter : ‘That’s wonderful’
CEO: ‘No no - I mean, I wake up every two hours and start crying’
(Roberto Guizeta, ex-CEO of Coca-Cola, quoted in Fortune)
6
7. But How Many of Us Really Know Our
Market Better Than it Knows Us?
Market Intelligence Audit – Show of Hands…
7
8. So What do You Need to Know About
Your Market?
Key objectives are usually to:
• Assess the market (e.g. attractiveness)
• Understand its dynamics (e.g. trends, competitors)
• Use this knowledge to implement a marketing plan
There are a number of dimensions which
need to be considered, including:
• Market size
• Look at total sales level
• Consider the potential market
• Market growth
• What will be the size of the market in the future?
8
9. Key Dimensions of Market Analysis
Market size
Market profitability
Market growth trends
Main products in the market
Customer attitudes and buying behaviours
Major competitors and market shares
Distribution patterns
Marketing strategies used in the market
9
15. So What Do You Need to Know
About Your Customers?
15
16. Finding Realistic Customer Market
Metrics is Becoming More Difficult
Old metrics - examples
• Return on marketing investment
• Profit per customer
• Return on promotional measures
New metrics - examples
• Traffic / distribution
• Response rates
• Average order value
• SEO
• Customer acquisition costs
• Integrated marketing campaigns / cross platform
16
17. Types of Customer Data Which Can Help Us
• Volunteered data – data provided by the customer, e.g.
by registering on a website
• Behavioural data – data derived directly from the
behaviour of the customer, e.g. purchasing or bill payment
patterns
• Attributed data – data which is extrapolated from the
results of market research, e.g. by interviewing a cross
section of prospective customers
• Profile data – data obtained by linking the organisation’s
database with other sources of information, e.g.:-
• Geo-demographic profiling data, such as MOSAIC and ACORN
• Lifestyle databases, e.g. Claritas
17
18. Role of Data in Knowing Our Customers
• Customer database information can be used for profiling
customers in many different ways, e.g.:–
• Timing and volume of purchases
• Geographical location
• Price preferences
• Profitability
• Using data to profile customers can tell us:-
• Which customers are most profitable & what their characteristics
are
• How to create segments/groups of profitable customers with
similar characteristics
• Which customers are most likely to respond to our
18 communications & marketing campaigns
19. Data Also Helps Us Know About
Customer Lifetime Value
• Customer Lifetime Value (CLV) is now used by many organisations
interested in retaining customers over the longer term, e.g. services
organisations
• CLV= total contribution (revenues minus costs) of a customer over
their lifetime with the organisation
• Enables organisations to calculate the future profitability of customers
• CLV forces organisations to focus more on customer service and
long-term customer satisfaction, rather than short-term sales
• CLV helps organisations decide which customers to invest in long to
gain a positive return on investment
• Customer databases play a key role in providing the data for this
analysis
19
20. We Can Use Data to Pull Customers up
the Loyalty Ladder
Partner
Advocate
Supporter
Client
Customer
Prospect
20
21. Word-of-mouth Referral & Customer Relationship Priorities
• The Net Promoter Score is obtained by asking customers on a 0 to 10 scale,
where 10 is "extremely likely" and 0 is "not at all likely":
• "How likely is it that you would recommend our company to a friend or colleague?"
• Respondents are categorized into one of three groups:
• Promoters (9–10 rating); Passives (7–8 rating); Detractors (0–6 rating)
• The % of Detractors is then subtracted from the percentage of Promoters to obtain
a Net Promoter score (NPS)
• An NPS that is positive (i.e. higher than zero) is good, an NPS of +50 is excellent
(Apple, Harley Davidson)
High
Profitability
Low Detractor Passive Promoter
21
Low Net-Promoter Score High Reichheld (2006)
22. We Also Need to Know About
Customer Buying Influences
Individual Situational
influences influences
Decision-making
process
Group
influences Marketing mix
Brassington & Pettitt, 2006
Customers are subjected to a variety of influences on
22
their buying decision process
23. Moving From Corporate Social Responsibility to Terminator Brands
During the “noughties”, consumer attitudes in many markets
shifted towards societal concerns around ethics, sustainability
and corporate social responsibility from marketers
– The environment
– Global warming
– Recycling
– Fair trade
However current marketing analysis shows consumers now prefer
decisive “terminator” brands
– Brands which take away the stress of everyday living, and “terminate”
consumer problems
– E.g. Lynx, Sky, Nike etc. – “Sorted!”
So do your customers see you as Nurturers or Terminators???
23
24. We Also Need to Know How to Scope
Customer Segmentation
Segmentation represents an effort to identify and categorise
groups of customers and countries according to common
characteristics
10.5 million dogs are owned in the UK – what products can be
targeted & positioned to this segment?
24
And in reality - who owns whom…..???
25. What do we need to know for
effective customer segmentation?
• Measurability
• Accessibility
• Substantiality
• Profitability
• Actionability
25
26. Bases For Consumer Segmentation
Most
Usage Behaviour appropriate for
Volume, Price, Usage Frequency planning in
stable market
conditions
Judgmental Data
Better guide to
Attitudes, Perceptions, Motivations, behaviour
Preferences under changing
market
Market Descriptors conditions
Demographic, Socio-Economic,
Geographic, Lifestyle, Family life cycle
26
27. Bases for Business Segmentation
Macro Micro
Size Product
Location Applications
Usage rate Technology
Purchasing and decision-
making processes
Buyer-seller relationships
How are these criteria changing?
27
28. Do we know enough about our most
dangerous competitors?
28
29. Competitor Analysis is Getting Harder...
We live in a world of hypercompetition
– A dynamic competitive environment, in which no
action or advantage can be sustained for long
Competition unfolds in a number of key areas
which we need to monitor amongst our
competitors
– E.g. price, quality, know-how, entry barriers, and
how deep their pockets are
29
30. Knowing Your Competitors
• Need to focus on identifying threats, opportunities or strategic
uncertainties created by existing or potential competitors
• Major steps:
1. Identify current and potential competitors
2. Understand competitors and their strategies
30
32. So overall, we need to know about three
key information areas
1. Information on the market environment
– E.g. PESTLE factors (Political, Economic, Social, Technological,
Environmental, Legal)
2. Information on customers
– Customer identification
– Customer characteristics & segments
– Main influences on what, where, when and how they buy the
product or service
3. Information on other organisations
– Gathering information on competitors and their actions
– Comparison of performance to identify strengths and weaknesses
32
33. Key Methods of Finding Out What we
Need to Know
Market research - market and sales forecasts / sales
potential
Product research - R&D and product testing
Attitude measurement
Price research - price perception and sensitivity
Distribution research
Marketing Communications research
Tracking studies e.g. customer satisfaction
33
34. Collecting Secondary Data
Internal • ccounting /
A
sources sales records
• arketing
M
database
Collection of
• eriodicals
P
secondary
data • ensus reports
C
• overnment
G
External publications
sources • nternet
I
• ther
O
34
Dibb et al, 2006
35. Collecting Primary Data
• ersonal
P
OBSERVATION
• echanical
M
Collection
of primary • ail
M
data • -mail /Internet
E
SURVEYS • elephone
T
• ersonal
P
35 Dibb et al, 2006
36. Internal Secondary Research Sources
Customer databases – behavioural data, volunteered data
and profiling data
Sales figures
Operational data – stock levels, etc
Customer satisfaction results
Advertising spend
Customer complaints records
Effectiveness data from promotional campaigns
Marketing research reports from past studies
36
37. External Suppliers of Market Data
List compilers/brokers
– Capture list of individuals and organisations and sell them to
companies for marketing purposes
Full-service agencies
– Offer a full range of research services and techniques
– Able to undertake every stage of the research (research design
through to analysis and report writing)
– Examples: TNS (www.tnsglobal.com), Ipsos (www.ipsos-mori.com)
Independent consultants
– Offer a range of services from undertaking small surveys (B2B),
manage parts of marketing research process or advise on
information collection, storage and retrieval
37
38. External Secondary Research Sources
Internet search engines
Social media and networking tools
Directories – Dun & Bradstreet, Financial Times company briefings
Governments and Government Agencies (e.g. CIA Factbook)
Published marketing research reports
Trade Press (Editors and Journalists)
Professional Institutes (CIM)
Newspapers and magazines (national and local)
Online news sources and aggregators (www.newsnow.co.uk, http://
uk.reuters.com
Specialist libraries
Market Research Agencies
38
39. Sources of Information - Institutions
Business libraries Export councils
University libraries Distributors
Chambers of commerce Sales subsidiaries
International Market Foreign trade organisations
Intelligence Centre (Trade such as JETRO (Japanese
Partners UK) Export Trade and Research
Business Links Organisation)
Embassies
Banks
Trade associations (CIM,
IOD, CBI)
39
40. Online Sources of Information & Socialnomics
Online communities, discussion
boards and blogs
– Increasing number of blogs and
discussion forums present marketers
with an opportunity to gain valuable
insight into thoughts of consumers
Social networking e.g. Facebook,
Twitter, LinkedIn
– Provides an opportunity for
organisations to:
• Gauge consumer reactions to
marketing campaigns
• Monitor brand reputation
• Analyse competitors
• Gather insightful market research
40
AVG SMB Market Landscape Report 2011
42. Sources of Information - Online Databases
Brand data
– www.brandchannel.com
– www.gbrands.com
– www.globalstrategies.com
Business Week
– www.businessweek.com
The Economist
– www.economist.com
European Union
– www.europa.eu.int
UK Trade and Investment
– www.uktradeinvest.gov.uk
UK Chambers of Commerce
– www.britishchambers.org.uk
United Nations
– www.un.org
World Bank
– www.worldbank.org
World Fact Book
– www.cia.gov/cia/publications/factbook
42 World Trade Organisation
– www.wto.org
44. Omnibus Surveys
• Organisations pay to include one or more questions in a
survey being sent on behalf of several organisations.
• Much cheaper means of surveying if only a few questions
are needed.
• BUT the client is restricted by the sample that the
research company uses and cannot choose where its
questions appear in the survey.
• Omnibus survey suppliers vary by sector, geographical
coverage, costs, sample size, speed of turnaround, etc.
E.g. http://www.yougov.co.uk/omnibus
44
45. Panels
• Used to collect data over a period of time from the same sample of
people.
• Useful for analysing trends, changing attitudes to political parties,
preferences relating to new types of products or ways of purchasing
e.g. online banking.
• Challenges include retaining the members of the panel over time and
careful replacement of members who drop out.
• Online survey panels are increasing in popularity and will often recruit
a large number of respondents from which it will sample to fulfil client
quotas
www.toluna.co.uk
45
46. Online PR
Objective
• Increase the number of online conversations about your
brand
• Drive targeted traffic to your website
• Increase your thought leadership position
What is it?
• Social Media
• Social Bookmaking
• Blogging
• Microblogging
• Forums
• Video Sharing
• Photo Sharing
• Podcasts
46
47. Other free sources of market information
Freebie market research websites
– www.researchandmarkets.com
– www.marketresearch.com
– www.theregister.co.uk
– www.techdirt.com
– www.lightreading.com
– www.totaltele.com
– www.brandrepublic.com/
– www.b2bm.biz
Market research agencies
– E.g. GFK, B2B International, Circle Research etc. – all publish free white papers / blogs with
market insights
Free survey tools
– www.surveymonkey.com
– www.surveyz.com
Discussion forums offering free market research
– www.freemarketresearch.co.uk
47
48. Free sources of market information
Official market statistics
– www.fao.org – United Nations import / export data
– www.ilo.org – international labour data
– www.imf.org – international economic data
– www.intracen.org – international trade statistics
– www.worldgazetteer.com – international city, country & population data
– www.statistics.gov.uk – UK business and consumer data
– www.bankofengland.co.uk - UK financial information
– www.hm-treasury.gov.uk – UK economic indicators and forecasts
http://www.youtube.com/watch?v=xTDN8cgCP3o
48
49. So Do We Now Know More About Our
Market Than It Knows About Us?
If not – let’s get researching!
49
52. Who Am I?
• Daniel Rowles
• CIM Course Director, Lead trainer for Econsultancy
• 14 Years experience in digital marketing
– Both client and agency side
• BBC, Vodafone, MasterCard, Warner Bros, Boots,
John Lewis, Aviva, Sony
• @danielrowles
53. Show of Hands…..
Google (or any other) Analytics
Facebook
LinkedIn
Twitter
Pinterest
Google+
55. Digital Marketing in Perspective
• 8 years of video are uploaded to YouTube every day
?
• Average view time of a YouTube video is 2.5 seconds
?
?
• The average Facebook user is 38 years old
• Google+ to reach 400M members by end 2012
?
• 92% of US children have some sort of web presence by
?
the time they are 2 years old
• All Stats from http://www.google.co.uk/intl/en/landing/internetstats/
76. Rule for Magnificent Web Success
• For every $10 spent on analytics data
• Spend $90 on people to tell you what it means
• Avinash Kaushik - Google
77. The path to ROI
SEO
Affiliates Email
Custom
Dashboard
Social
Display
Media
PPC CRM