Market Research on a Budget: Leveraging Complementary Markets for Increased Sales Potential
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The document discusses market research techniques for identifying complementary markets with small marketing budgets. It provides a case study of an industrial manufacturer that leveraged market research to identify and validate a new complementary market in the medical devices industry. Through competitor analysis, trade shows, and sales calls, the manufacturer was able to prove the sales potential of the new market despite allocating only 150 hours and a limited budget. The document advocates validating research assumptions through customer discussions to minimize risk and maximize success when entering new markets.
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Market Research on a Budget: Leveraging Complementary Markets for Increased Sales Potential
- 1. Michelle Barley Fmr. Director of Marketing Parco, Inc. @shella_b Member, SoCal BMA @socalbma • #socalbma Eileen Licitra Dir. of Product Marketing Performance Analytics Iteris, Inc. @eileenlicitra Member, SoCal BMA Market Research on a Budget Leveraging Complementary Markets for Increased Sales Potential
- 2. Traditional perceptions of Marketing are crippling to success. Organizations traditionally view Sales as the revenue engine, and marketing teams must work more diligently to barter for investments in their departments. In order to receive these much-needed investments, it is critical for marketers to demonstrate their contribution to revenue and overall success. – Source: MarketingSherpa, 2012 B2B Marketing Benchmark Report #socalbma
- 3. At the same time, marketers must allocate their budgets across more media than ever before. #socalbma
- 4. Today, we’ll discuss how you can: • Contribute to company revenue despite a small budget • Identify and leverage complementary markets • Utilize low cost market research methods from a case study #socalbma
- 5. Where can you contribute to revenue and overall success? #socalbma
- 6. Mobile Apps Podcasts Print Collateral Seminars TV & Radio Ads Traditional Marketing Trade Shows Digital Marketing Websites Email Marketing Online Videos BloggingPPC Direct Mail Social Media SEO Webinars #socalbma
- 7. Despite the numerous opportunities to show value, marketers still struggle to prove ROI. #socalbma
- 8. Contribution to revenue is undeniable whenever research identifies a new viable market. However… #socalbma
- 9. • Rule of thumb is 5-10% of company revenues • Yet, most B2B companies allocate only 1-2% of company revenues to marketing -- Source: Forrester, Focus B2B Marketing Budget Gains on Business Outcomes to Succeed in 2014 #socalbma
- 10. Remember, large budgets don’t always mean better returns… #socalbma
- 11. ...and small budgets spent wisely can potentially win big. #socalbma
- 12. How can B2B marketers lead Market Entry Strategies on a tight budget? #socalbma
- 14. Market Penetration Product Development Market Development Diversification Product/Market Expansion Grid Existing Products New Products Existing Markets New Markets Complementary Market Development #socalbma
- 15. Complementary markets exist within the industries your competitors serve but your company has chosen not to enter. #socalbma
- 16. MANUFACTURER Oil & Gas Aerospace & Defense Automotive Fuel Dispensing - - - - Identify Complementary Markets Through CompetitorsINDUSTRY COMPETITOR A Oil & Gas Aerospace & Defense Automotive - Chemical Processing* - - - COMPETITOR B - Aerospace & Defense Automotive - - - - - COMPETITOR C - - - - - Food & Dairy* Semiconductor* Pharma & Medical* * Complementary market. #socalbma
- 17. Which market should you target? • Start with one market • Decide how similar it should be to existing customer base • Consider what you already know about each market #socalbma
- 18. If it’s that easy, why doesn’t everyone do it? #socalbma
- 19. Companies can have any number of reasons. • Simply don’t know where to begin • Have never felt the need to expand into other markets • Believe that it will take too much time and resources #socalbma
- 20. Some companies see only obstacles. A manufacturer, for example, may be concerned: • Adding required quality or industry certifications • Building a clean room • Investing in new technology or equipment #socalbma
- 21. Other companies see opportunities. • Mitigate risk by diversifying sales portfolio • Increase sales by utilizing a low-cost market entry option • Establish relationships for future opportunities #socalbma
- 22. Now that we know what we stand to gain, let’s get started. #socalbma
- 24. Before you hit the ground running be sure to define your... END GOAL #socalbma
- 25. • Choose a complementary market that you can enter with your existing products • Identify target companies within those markets • Locate contacts at target companies to validate sales potential #socalbma
- 26. If you don't know where you are going, you will probably end up somewhere else. -- Source: Laurence J. Peter, formulator of the Peter principle #socalbma
- 27. CASE STUDY 1 Finding and validating a complementary market for an industrial manufacturer #socalbma
- 28. M I S S I O N P O S S I B L E Good afternoon Marketing Guru… Your mission, should you choose to accept it, is to allocate 150 hours to identifying a new market, and validating its sales potential. As always, should you or any member of your marketing team fail to demonstrate revenue contribution, the CEO will disavow any knowledge of your employment. #socalbma
- 29. We will discuss how the manufacturer: • Divided roles and responsibilities • Identified complementary market segments • Conducted low cost research #socalbma
- 30. Research & Validation Tasks Were DistributedTo Marketing & Sales Team Intern/Part-Time Conduct online research, gather materials, and find target companies Marketing Decide on target market, complete in-depth research, conduct on-the-ground research Sales Conduct sales calls to validate market sales potential #socalbma
- 31. MANUFACTURER Oil & Gas Aerospace & Defense Automotive Fuel Dispensing - - - - The manufacturer wanted a substantially different market.INDUSTRY COMPETITOR A Oil & Gas Aerospace & Defense Automotive - Chemical Processing* - - - COMPETITOR B - Aerospace & Defense Automotive - - - - - COMPETITOR C - - - - - Food & Dairy* Semiconductor* Pharma & Medical* * Complementary market. Pharma & Medical* #socalbma
- 32. Where did the manufacturer research market segments? #socalbma
- 33. Explored competitor websites. • Searched for customers • Watched video testimonials • Identified trade shows #socalbma
- 34. Profiled existing accounts. • Current industries served • Decision makers’ past employers • Recent facility tour #socalbma
- 35. Visited trade shows. • Downloaded show guides • Attended trade shows for on-the-ground research • Interviewed exhibitors about products and services #socalbma
- 36. Leveraged local shows to optimize travel budget. #socalbma
- 37. Leveraged local shows to optimize travel budget. #socalbma
- 38. Trade shows easily broke down industry segments. #socalbma
- 39. Searched industry specific magazines, directories, professional associations. • Media Kits • Editorial Articles • Advertisements • Subscriber Lists • Members/Service Directories #socalbma
- 40. When did the manufacturer know it had identified the right target segment? #socalbma
- 41. Research revealed commonalities. • Overlap in trade shows • Competitors’ customers in similar markets • Ads targeting specific segments CONVERGENCE #socalbma
- 42. All research pointed to a promising target segment. #socalbma
- 43. NOW WHAT? A target segment was identified in a complementary market. #socalbma
- 44. Marketing worked with Sales to validate the sales potential of the target market. #socalbma
- 45. Compiled a list of target companies within the medical devices segment • Focused on quality over quantity • Identified 5-10 companies for the Sales team to contact Found key contacts within each target company through online research • Met with the Sales team to narrow-down its findings #socalbma
- 46. Online business directories helped identify target companies. #socalbma
- 47. What were the results? #socalbma
- 48. • Target customers in the medical devices industry would INDEED purchase the company’s existing products. • Sales potential was reinforced by landing a large account from the target list within 3 months. The target segment proved promising! #socalbma
- 49. Where do you go from here? • Dig further to understand true market viability • Develop a growth strategy • Identify more target companies and leads #socalbma
- 50. Are you ready to be a Marketing Hero? • Large budgets don’t guarantee success. • Small budgets don’t necessarily mean small returns. • Market Research doesn’t have to be expensive. • Take advantage of complementary markets. #socalbma
- 51. But wait, there’s more! #socalbma
- 52. Is your business compatible with the new market? Understand customer expectations: • Response times • Product pricing • Lead times #socalbma
- 53. So when the internal research is complete… YOU’RE JUST GETTING STARTED #socalbma
- 54. #socalbma
- 55. What does transportation have to do with agriculture? #socalbma
- 56. Collecting, analyzing, and contextually modeling big data #socalbma
- 57. Weather and its impact on roads and crops #socalbma
- 58. – Source: Bloomberg The Top 3 Reasons Businesses Fail #socalbma
- 59. Reason #1 Not really in touch with customers through deep dialogue. #socalbma
- 60. Reason #2 No real differentiation in the market (lack of unique value propositions) #socalbma
- 61. Reason #3 Failure to communicate value propositions in clear, concise and compelling fashion. #socalbma
- 62. Success comes from knowing what you don’t know, more than coming from what you do know. -- Source: Ray Dalio, Founder and Co-Chief Investment Officer, Bridgewater Associates #socalbma
- 63. Research is where you start, not where you stop. #socalbma
- 64. Validate your assumptions for a better path to success… #socalbma
- 65. …instead of racing ahead where your initiative may crash and burn. #socalbma
- 66. A process for validating your research and assumptions #socalbma
- 67. Research • An important starting point to understand Trends, market conditions, pain points Market segments and growth projections Competitive and substitute products #socalbma
- 68. Research Gaps and Opportunities • Validate by talking with prospects • Understand urgency and pervasiveness of needs • Identify best target segments • Develop assumptions about your target market, product fit, positioning and pricing #socalbma
- 69. Research Gaps and Opportunities • Validate assumptions • Assumptions based on research Go/No-Go? • Is your business a good fit for this market? #socalbma
- 70. Go-To-Market Strategy • Reduced risk • Better positioning • Stronger communication Go-To-A-Different Strategy • Evaluate a different industry • Explore other revenue streams OR #socalbma
- 71. CASE STUDY 2 Connecting investors to opportunities in a new, growing, and controversial industry #socalbma
- 72. The Idea and Assumptions • 1-2 day conferences for investors • Connect individuals with investment opportunities • Each investor would pay ~ $5,000 for conference and associated services • Attract 150-200 investors per conference #socalbma
- 73. What did the research tell us? #socalbma
- 74. Colorado dispensaries generated $1 million first day of legal use Few investment conferences focused on Cannabis industry Existing Investor conferences commanding $5K to $8K per attendee Legal marijuana forecasted to $10.2 billion market by 2018 Colorado projected $578.1 million a year in wholesale and retail marijuana sales #socalbma
- 75. The Challenges • Short time frame • Limited budget • Finding the right audience Individual, active investors in the U.S. #socalbma
- 76. Evaluated Multiple Survey Panel Services to Validate Assumptions #socalbma
- 77. Service Selected: Survey Monkey Audience We surveyed over 200 pre-screened, pre-qualified individual, active investors who met our target profile. #socalbma
- 78. Did the survey results validate our assumptions? #socalbma
- 79. 51% were not interested in the Cannabis industry at all. But that didn’t surprise us. #socalbma
- 80. Of the remaining 49%: 0 10 20 30 40 50 60 Somewhat interested in the industry Attended investor conference past 2 years Paid more than $2000 Not at all likely to attend Cannabis event Percentage 12% 0% 48% 28% #socalbma
- 81. The Results? • Abandoned the original idea • Explored partnership opportunities in the industry • Avoided significant financial loss! #socalbma
- 82. CASE STUDY 3 Technology (SaaS) Company #socalbma
- 85. The Problem • Declining media audiences and revenue • Consolidation • Diminishing investment in technology #socalbma
- 86. Growth depended on finding new markets for existing products. #socalbma
- 87. How did we research new markets and validate our assumptions? #socalbma
- 88. Combed through secondary research #socalbma
- 89. Consulted with Industry Analysts and Experts #socalbma
- 91. Digital CMS Ethnic Media Government Faith Based Organizations Regional Magazines Narrowed it down to 4 new markets: #socalbma
- 92. Digital CMS Ethnic Media Government Faith Based Organizations Regional Magazines Ultimately to 2 new markets: #socalbma
- 94. Integration with a technology partner • Better product-market fit • Streamlined internal development • New revenue stream #socalbma
- 95. Won new clients • Faith-based organizations • Faith-based radio groups • Other media interested in video streaming #socalbma
- 96. Big win in government! • $1 million+ project with the Nuclear Regulatory Commission #socalbma
- 97. Made the Board of Directors a bit happier. #socalbma
- 98. Getting to the answers you need: DEVELOPING INTERVIEW QUESTIONS #socalbma
- 99. Open ended and build on information • Why? • Tell me more? • How would that work? #socalbma
- 100. Do not assume! • What are the top trends in your industry? • How are those impacting your department? • How are you solving these problems today? #socalbma
- 101. Discover what’s most important • Of the following features, please select the 5 most important to your operation • Of the following features, please rank them from 1 (most important) to 5 (least important) #socalbma
- 102. Understand the buyer’s process • How do you learn about new products or services? • What is the purchasing process and criteria? • Who else is involved in the decision? #socalbma
- 103. How urgent is the need? • What would prompt you to change solutions? Why? • If this were available today, would you purchase? • Is this product/service worth $X? #socalbma
- 104. Listen for keywords to incorporate into marketing communications • How would you describe this solution to your colleagues? #socalbma#socalbma
- 105. Questions? /socalbma /company/socalbma /socalbma /socalbma Market Research on a Budget Leveraging Complementary Markets for Increased Sales Potential SoCalBMA.or Michelle Barley Fmr. Director of Marketing Parco, Inc. @shella_b Member, SoCal BMA Eileen Licitra Dir. of Product Marketing Performance Analytics Iteris, Inc. @eileenlicitra Member, SoCal BMA SoCalBMA.org
- 106. Market Research on a Budget Leveraging Complementary Markets for Increased Sales Potential SoCalBMA.org
Notas del editor
- Website come up alone (inbound) Email marketing (inbound/outbound)
- Add vertical spaces between bullet points
- Stock market crash image?
- Stock market crash image?
- Time some time for audience to absorb photo.
- Talk about SERVICE industries (how to make that visible for slide share)
- Laurence Johnston Peter (September 16, 1919 – January 12, 1990) was a Canadian educator and "hierarchiologist", best known to the general public for the formulation of the Peter principle.
- Sharpen black, rid warm tones
- LEVERAGE WHAT YOU KNOW Look up the industries for customers you aren’t familiar with Testimonials help identify pain points or priorities for customers Competitor trade shows may help you identify markets your competitor already did the research on
- LEVERAGE WHAT YOU KNOW Buyers tend to stay in the same industry (manufacturing, aerospace, etc.) – maybe they know companies you can target Touring a facility may open your eyes to other industries you didn’t know the customer served and parts they are supplying Distributors may be heavily diversified and provide insight to industries or markets you weren’t familiar with
- IMAGE IS TO CONTRAST THE IDEA THAT YOU DON’T REALLY NEED TO TRAVEL FAR
- IMAGE IS TO CONTRAST THE IDEA THAT YOU DON’T REALLY NEED TO TRAVEL FAR
- Clarify ads are digital and print
- See if we can use graphic of business people getting ready to sprint
- Eileen provided better image of transportation/agriculture – same image as on Iteris’ website
- (complex STREAMS of big data. Iteris: collecting, analyzing & modeling (contextually) big data into big breakthrough solutions – directing to farm/farming scene of sorts) – look for Eileen email – approved purpose statement, to-date. USE MICHELLE’S VISUAL
- (Weather: not just roads & safety (transportation), leveraged it for (agriculture) – snow plow to farmer measuring)
- Investment, money time resources wasted, (chart, arrow-down) did not gain enough on marketshare, disappointed investors – the market did not accept your product/service/solution.
- (edited the graphic’s text from “really” to “fully” -- (ignoring the customer) USE MICHELLE’S VISUAL
- (everyone looking the same, or product like soup can looking the same) USE PENCILS OR UMBRELLAS
- (person talking other bored to tears) USE MICHELLE’S VISUAL
- (magnifying glass & person) USE MICHELLE’S VISUAL
- Edited slide: Heading has changed – removed bullet points (not going to use.)
- A positve image. Next slides before case study…The biggest, most common mistake that business make. (Race car – crash and burn) Gates: to go through: Idea to assumptions to research to findings to new assumptions Reduce failure (research findings lead to new assumptions)
- Image of race car wreck – empahsize how companies often succumb to no appetite for taking the time to research and validate – one of the biggest and most common mistakes is rushing to market without performing the necessary steps to lower risk FIND IMAGE OF CAR ON ONLY 2 WHEELS IN A TURN – found this image – just for a laugh (that’s me sometimes)
- TAKE UP LESS VERTICAL SPACE
- For Go/No-Go I’m reiterating what Michelle covered at the end of her presentation
- TAKE UP LESS VERTICAL SPACE
- Add cannabis image to this slide – will appear after I provide a very brief overview of the founders, their background, and industry they wanted to enter.
- NEED A NEW IMAGE FOR THIS. More marijuana
- NEED BACKROUND IMAGE – QUESTION MARK? SOMEONE LOOKING AT A REPORT?
- I see someone in a hurry looking at his/her watch
- We don’t need this slide – I suggest removing it – repetitive without adding anything substantive
- Visual idea: fork in the road? Different paths?
- Visual: a website with detailed content – possible image from depositphoto if you think this works – all I could find
- Traditional print newspaper; radio towers or radio station – found these on depositphotos
- Visual: decline, contraction, weakened state, SHRINKING ONE POSSIBILITY I FOUND ON DEPOSITPHOTOS
- http://depositphotos.com/search/new-markets.html?qview=45243465
- Pile of research studies, people reviewing studies - http://depositphotos.com/search/experts.html?qview=13881343
- Just a possibility – get some diversity in – from depositphotos: http://depositphotos.com/search/business-advisor.html?qview=10955965
- http://depositphotos.com/search/trade-shows.html?qview=10467099
- http://depositphotos.com/search/technology-partner.html
- Just a thought – found it here: http://depositphotos.com/search/new-clients.html?qview=103140858
- One option: http://depositphotos.com/search/government.html?qview=4231516
- http://depositphotos.com/search/happy-managers.html?qview=101011232
- People talking? Another question mark?
- Visual: Digging, drilling down, uncovering something important, maginifying glass
- Two people talking one-on-one; listening intently; figuring out the real probelm
- Visual: most important elements bubbling to top;
- Visual: process, criteria
- Visual: Rushed, urgent, extreme need, can’t wait
- Visual: word bubbles, two people talking over coffee,