Dee Davey, Owner of Creative Ideas Marketing talks to LA2M (Lunch Ann Arbor Marketing) group about how to do basic market research in order to better understand customers' needs.

1. Creative IDeas Marketing
Interim Marketing and Service Product Management
Market Research 1-2-3
For LA2M, 22nd October 2008
Dee Davey l Creative Ideas Marketing
www.creativeideasmarketing.com
dee.davey@creativeideasmarketing.com
Creative IDeas Marketing
Interim Marketing and Service Product Management

2. Market Research 1-2-3 Outline
Dee Davey, Owner of Creative Ideas Marketing talks
to LA2M (Lunch Ann Arbor Marketing) group about
how to do basic market research in order to better
understand customers' needs:
1. Why
2. What (to do) - Situation Analysis
1. Internal Discovery
2. External Market & Competitive Review
3. Test / Validate Understanding
3. How
Creative IDeas Marketing
Interim Marketing and Service Product Management

3. Why Do Market Research?
Know / Understand Customer Needs
• Match Core Competencies to customer need
• Offer right things to the right customers for the right reasons
• Ensure you can make $ (Is market big enough for our idea?)
• Will customers buy? How are we different / better?
• Build Brand
• Build Messaging
• Build Product / Service
Creative IDeas Marketing
Interim Marketing and Service Product Management

4. Why Do Market Research?
Know / Understand Customer Needs
• Customer Drivers
• Customer Buying Behaviors
• Size of Customer Opportunity
• Core Competencies
• Value Offered
Identify Need & Match to Business Capability
Creative IDeas Marketing
Interim Marketing and Service Product Management

5. Market Research – The What
Situation Analysis / Market Research
1. Internal Discovery
• Customer needs, issues, drivers, benefits most valued
• Competencies, capabilities
2. Market & Competitive Analysis
• Market size, growth
• Economic, bargaining power
• Industry, competitive
• Environmental, technological,
• Political, legislative .
3. Validate Understanding
• Customers, Partners, Stakeholders
• Industry Leaders, Media, Other
Creative IDeas Marketing
Interim Marketing and Service Product Management
Proprietary & Confidential 5

6. Market Research – The What
Situation Analysis / Market Research
1. Internal Discovery
• What do we know?
• What don’t we know?
2. Market & Competitive Analysis
Market
• Is there a market? How big?
Offer
• What is out there? What in similar industries?
Competition
• What can we learn? .
3. Validate Understanding
Creative IDeas Marketing
Interim Marketing and Service Product Management
Proprietary & Confidential 6

7. Situation Analysis
• Internal Discovery Internal Discovery – What
• Market Analysis
• Validation Understanding Customer Needs
Internal Discovery – What
• Customer needs - Issues, Drivers, What is
important?
• What do customers most value?
• What do customers say about us?
• How do our customers engage with us?
• What are our internal processes?
• What are we really good at doing?
• How do we compare with our competitors?
Creative IDeas Marketing
Interim Marketing and Service Product Management

8. Situation Analysis
• Internal Discovery Internal Discovery – How
• Market Analysis
• Validation Understanding Customer Needs
Internal Discovery – How
• Information Workshops
• SWOT – Strengths, Weaknesses, Opportunities,
Threats
• Process Based Workshops
Interviews include Partners and other Stakeholders
Creative IDeas Marketing
Interim Marketing and Service Product Management

9. Situation Analysis
• Internal Discovery Internal Discovery – How
• Market Analysis
• Validation Information Workshops
Information Workshops
Objective: Clarify thinking; Spot customer, market,
competition knowledge gaps, Gain concensus
• Cross Company View
• Different Internal Perspectives
• Organize Questions
Topics / Sales Service Past Customer Business Trends Competition Specifics
Example: Individual or
Team
Process Process Marketing Needs Capabilities
Discussion
Methods / Needs SWOT
Tools
Practitioners Hot Buttons Best
Why IMS Drivers Uniqueness
Consultants
Problems Why Us?
Value sought
Individual A XXXXXXXX XXXXXXXX
XXXXXXXX XXXXXXXX XXXXXXXX XXXXXXXX
Individual B XXXXXXXX XXXXXXXX XXXXXXXX XXXXXXXX
Teams A XXXXXXXX XXXXXXXX XXXXXXXX XXXXXXXX XXXXXXXX XXXXXXXX
Team B XXXXXXXX XXXXXXXX XXXXXXXX XXXXXXXX XXXXXXXX XXXXXXXX XXXXXXXX
Creative IDeas Marketing
Interim Marketing and Service Product Management

10. Situation Analysis
• Internal Discovery Internal Discovery – How
• Market Analysis
• Validation Information Workshops
Information Workshops
Chart 1) Market Need / Customer Buying Behavior –
Commercial Opportunity Purchaser Responsible for Equipment
Example Importance//Need for Ex W
Commercial Local A Good Opportunity
•Have budgets
Gym Mgr or Gen
Mgr – Different by
•Maintenance Mgr
•Facilities Mgr
•Want no hassle service •Gym Mgr
Opportunity •Ops Split
Account
•Gym Team
by Type of
Customer
Corporate Good Opportunity •Management Co
•Like clubs don’t want to fail customers Or
•Have budgets •Site Mgt
Hotels, Good Opp for Non-Chain for SC & Ex W •Group Purchasing •Independent: Facility Mgr /
Resorts & •Service important to increase throughput to •Gym Mgr Duty Mgr
Spas hotel •Fitness Team •Chain: Ops / Gym Team
•Staff not motivated to maintain •General Mgr
Professional Low Opportunity •Sports Team •Training Team (make
Sports •Few clients / not enough business •Training Team contact for Service
Teams •Big players – want it for free •Physio
Creative IDeas Marketing
Interim Marketing and Service Product Management

11. Situation Analysis
• Internal Discovery Internal Discovery – How
• Market Analysis
• Validation Information Workshops
SWOT
Objective: Evaluate business Strengths, Weaknesses,
Opportunities and Threats – relative to business or
project goal
• Internal / External
• Favorable / Unfavorable Factors
• Your business
• Each of Your Main Competitors
Example:
Creative IDeas Marketing
Interim Marketing and Service Product Management

12. Situation Analysis
• Internal Discovery Internal Discovery – How
• Market Analysis
• Validation Information Workshops
SWOT - Strengths, Weaknesses, Opportunities and Threats
Chart 7) Service SWOT - Customer Feedback / Analysis
Example: Strength Weakness
•Good Brand •Time to call out
•Global •Parts Orders
•Tools for the Job •Updating client
•Phone Responsiveness ( lack of feedback: parts, engineer can’t
•1st Time Fix make it)
•Flexibility •Communication – ourselves
•No AVR – personal •Communication – Customers
•Good Relations with Clients •Communication – 3rd party
•Well liked / Trusted •Documentation
•Persuasive/Convincing
•Knowledge & Abilities of Engineers
•Well trained Engineers
•Offer training
Opportunity Threat
•Many HO Projects Planned •Poor courier service
•Contracts to Private Clubs •Parts order/receipt process in gyms
•End of Warranty Renewal Alerts (staff don’t know what to order / why or what
•PM Cleaning / Lub / Parts Kits at point of something has come – Dee see DX)
call out or installation •Ran out of Time and Steam
•Offer of SC at point of Call Out – Tina
already doing?.
Post Workshop Customer Discovery -
Opportunity to Differentiate:
•Contact Programme Comms Strategy
Creative IDeas Marketing •Fix Parts Process
Interim Marketing and Service Product Management

13. Situation Analysis
• Internal Discovery Internal Discovery – How
• Market Analysis
• Validation Process Based Workshops
Process Based Workshops
Objective: Gain an internal perspective of customer needs at
key steps of sales and service delivery processes
• Sales / Service delivery cycle
• Customer touch-points
• Different perspectives of the business
• Untapped information within the business
• Draw out what customers have already told you through
day-to-day interaction
Example: PTO
Creative IDeas Marketing
Interim Marketing and Service Product Management

14. Situation Analysis
• Internal Discovery Internal Discovery – How
• Market Analysis
• Validation Process Based Workshops
Example: Process Workshops
Outgoing to DX
Cust Cust Outgoing non DX B2B
Buys Uses Outgoing Royal Mail
(Signs Up) Outgoing Carriers
Ask Customers what they Want-Need/
Balance against What DX can deliver]
Receives Outgoing Mail Outgoing Internal
(A) Consumables
(C)
/ Tech (B) Income from DX
Income Royal Mail
Incoming Mail Income Carriers
(D)
Income Internal
Consumable
Re-order (E)
Tracking Process (F)
Interact with DX via People
Interact with DX via Technology
DX DX Receive / Pay Bill
Sells Deliver (G)
Creative IDeas Marketing
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15. Situation Analysis
• Internal Discovery Internal Discovery – How
• Market Analysis
• Validation Process Based Workshops
Example: Process Based Workshops
Customer Touch Points / Sales-Installation-Delivery Process
Phone
/
• Who (customer) is Meeting
/
interaction with Site visit – do plan
/
demo
/
• What are expectations proposal (product/support
/
phone / fax (Depending on A/C) follow-up call
/
Customer raise purchase order
• What are business /
Customer sends order to Nautilus
capabilities /
Rep informs Customer of Delivery Date
/
Deliver to Site
/
Full Installation
/
Follow Up by Rep 24 hours
/
Phone / Visit Depending on Size of A/C
Creative IDeas Marketing
Interim Marketing and Service Product Management

16. Situation Analysis Market Analysis - What
• Internal Discovery
• Market Analysis Listening & Talking
• Validation
with Your Customers
Market Analysis – What
• Gather Information
• Trends and market drivers
• Industry vertical market penetration
• Industry purchasing behaviors
• Competitive Assessment
• Opportunities and threats
• Position your business within the context of competing
companies, methods, alternative sources of a business
offer
• Identify Niche Pockets of Opportunity
• Sociological, technological, environmental, economic,
environmental, legislative and political changes
Creative IDeas Marketing
Interim Marketing and Service Product Management

17. Situation Analysis Market Analysis - How
• Internal Discovery
• Market Analysis Listening & Talking
• Validation
with Your Customers
Primary - Traditional Research
1-2-1 Interviewing
• In depth, enlightening, opens doors to unforeseen opportunities!
Traditional Surveys & Web Surveys
• Formulate questions… and ask!
• www.surveymonkey.com
Focus Groups
• Interactive, multiple customer views, new idea generation
Creative IDeas Marketing
Interim Marketing and Service Product Management

18. Situation Analysis Market Analysis - How
• Internal Discovery
• Market Analysis Listening & Talking
• Validation
with Your Customers
Primary - New Media / Technology Research
Forums / Communities
• Brand monitoring, listening in to customer views
Blogs
• Using conversations with customers to learn wants & needs.
Social networking
• Asking questions to learn customer wants & needs
• Visible presence
• Open communication
• Product development / offer improvement
Creative IDeas Marketing
Interim Marketing and Service Product Management

19. Situation Analysis Market Analysis - How
• Internal Discovery
• Market Analysis Listening & Talking
• Validation
with Your Customers
Primary - Alternative Research
Process Based with Customer
• As discussed earlier
Review Similar but Different Industries
• Example: Nautilus Extended Warranty
Talk with Competitors / Potential Partners
• Different “niche” areas – partner opportunity
• “Pie is big enough”
• Different location
Creative IDeas Marketing
Interim Marketing and Service Product Management

20. Situation Analysis Market Analysis - How
• Internal Discovery
• Market Analysis Listening & Talking
• Validation
with Your Customers
Secondary - Market Analysis
Websites - Industry, Competitor, Customer-specific information
Wikipedias - An open community encyclopedia
Databases - Some available “free” through public libraries
Industry Reports - Expensive but comprehensive
• www.marketresearch.com – Listing of reports
• Direct to market research sites for listings
Industry Report Abstracts - Find “free” snippets of industry trends
• Method 1- Via blogs, reviews
• Method 2 - Some “free” via Reference USA
Creative IDeas Marketing
Interim Marketing and Service Product Management

21. Market Analysis - How
Find Information – Search Method 1
Via blogs, comments on the web
Find a Relevant Report
(www.marketresearch.com, any research company site)
i.e. Emerging Technology Trends via Garnter.com
l
Google the Author
(www.marketresearch.com, any research company site)
i.e. Jackie Fenn
l
Read Reviews and Blogs
Creative IDeas Marketing
Interim Marketing and Service Product Management

22. Market Analysis - How
Find Information – Search Method 2
Use Reference USA to tap into published reports
Search a Known Player in Your Target Industry
(or find a company name using SIC or NAICS codes)
l
Look in Company News Section
l
Text Versions of Articles, Press Releases and
Industry Related Reports
Creative IDeas Marketing
Interim Marketing and Service Product Management

23. Research / Segmentation Process
Use Market Intelligence Select & Prioritize potential markets
⇓ ⇓
Which markets currently purchase? Build / define target customer profile
⇓ (Purchaser/buyer profile)
Which segments have “pain”? ⇓
(Match need/pain to Competency) Create value proposition for selected
⇓ markets & define specific offer
Opportunity by geographic constraints for selected market
⇓ ⇓
Which areas are growing / shrinking? Go Test
(US gov statistics, SBTDC, MEDC etc) ⇓
⇓ Refine strategy / offer based on
Estimate opportunity size / potential feedback.
(i.e. by value of purchasing behavior) ___
Creative IDeas Marketing
Interim Marketing and Service Product Management

24. Government Data & Information
Census.Gov - http://www.census.gov
• U.S. Census Bureau - drill down to custom data
Factfinder - http://www.factfinder.census.gov
• U.S. Census Bureau site - useful for local level data
Michigan.gov - http://www.michigan.gov
• Good engine. Good for legislative information
SEMCOG (Southeast Michigan Council of Governments)
• Demographic Info
• Traffic Count + Historical
Northwest Michigan Council of Governments
• Fed/Mi data broken down into Regional data
• These guys are data-nuts. If government data exists, they have it
Creative IDeas Marketing
Interim Marketing and Service Product Management

25. Situation Analysis / Market Research
Summary
• Internal
• Interviews / Workshops / Group knowledge
• Review of existing documentation
• Market & Competitive
Primary Secondary
• 1-2-1 Interviews • Market research reports
• Surveys / Web surveys • Public / Private
• Workshops (inc process) databases
• Focus Groups, user forums, • Business libraries
communities, blogs, social • Government statistics
networking • Public information
• Other industries / competitors
Creative IDeas Marketing
Interim Marketing and Service Product Management

26. Situation Analysis
• Internal Discovery
• Market Analysis Validate
• Validation
Validation – What
Clarify Your Understanding
Validation - How
Go Back and Ask Your Customers!
Starts and Ends with YOUR CUSTOMER
Creative IDeas Marketing
Interim Marketing and Service Product Management

27. Q&A
Dee Davey, Creative Ideas Marketing
dee.davey@creativeideasmarketing.com
www.creativeideasmarketing.com
Creative IDeas Marketing
Interim Marketing and Service Product Management

28. Biography
Dee Davey helps businesses become more successful by delivering
strategic market planning, service product development and business operations
improvement projects; primarily for companies who offer technology or business
services to their customers. Her interim marketing business, Creative Ideas
Marketing, started in 2004 in the UK, helps companies adapt and extend client
service offers, helps clients find new sources of revenue and brings ideas for
new service products to life. Creative Ideas Marketing helps businesses who
want to take the next step in marketing their business, but lack the resource or
time to pull it all together.
Dee has extensive marketing experience engaging with mid-sized to major multi-
national technology & service companies including AT&T/NCR, Siemens,
Vodafone, Hays DX, StairMaster and Nautilus. An international marketer
resident in England for 30 years, Dee has a unique ability to view and
understand global marketing issues from a different perspective. Relocated to
Michigan, Creative Ideas Marketing services clients primarily in technology,
telecommunication and health and fitness industry sectors. Dee achieved her
Professional Diploma in Management from the Open University, Open Business
School in 1991, and in the same year her Diploma in Marketing Management
from the United Kingdom’s most stringent professional marketing body, the
Chartered Institute of Marketing.
Creative IDeas Marketing
Interim Marketing and Service Product Management