Actionable Insights and Strategic Impact - 2012 Market Research and Competitive Intelligence Priorities Survey Results

1

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2012 market research and competitive intelligence priorities survey results

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2012 survey resultsgrowth team m e m b e r s h i p™

CONTENTS

INTRO

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Survey Purpose and Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

What is the Growth Team Membership™ . . . . . . . . . . . . . . . . . . . . . . . . 5

Market Research and Competitive Intelligence Overarching Challenges . . . . . . . . . 6

Key Market Research Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7SECTION

1

Competitive Intelligence Resource Trends . . . . . . . . . . . . . . . . . . . . . . . . 23SECTION

4

Market Research Resource Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11SECTION

2

Special Interest Topic: Tools of the Trade . . . . . . . . . . . . . . . . . . . . . . . . 31SECTION

5SECTION

6

Key Competitive Intelligence Challenges . . . . . . . . . . . . . . . . . . . . . . . . . 19SECTION

3

Respondent Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

3



Growth Team Membership™ research.

Introduction

Market Research and Competitive Intelligence Survey Executive Summary

SECTION 1: Key Market Research Challenges

Key Challenge Challenge Root CauseEnsuring internal clients/stakeholders integrate research insights with their decision-making

Lack of strategic alignment and executive support

SECTION 2: Market Research Resource Trends

Resources Budget Allocations Outsourced Research2012 budgets and staffing levels will remain constant

65% of the budget goes to vendors Vendors are relied on for customized primary research (e .g ., focus groups or surveys)

SECTION 5: Special Interest Topic: Tools of the Trade

Primary Research Tool Social Media Platform Purpose of Social Media PlatformKey word research and tracking Special interest blogs, communities, and

forums Tracking competitor product/service development

SECTION 3: Key Competitive Intelligence Challenges

Key Challenge Challenge Root CauseAligning Key Intelligence Topics (KITs) to the company’s strategic priorities

Lack of process and common objectives

SECTION 4: Competitive Intelligence Resource Trends

Resources Budget Allocations Outsourced Research2012 budgets and staffing levels will remain constant

43% of its budget goes to vendors Vendors are relied on for customized secondary research (e .g ., specialized market analysis)

4




Introduction

Survey Purpose and Respondents

Co-SponsorSurvey PopulationMethodologyResearch Objective

To understand the most pressing challenges shaping market research and competitive intelligence executives’ 2012 planning

Web-based survey platform Manager-level and above market research and competitive intelligence executives from companies globally

168survey respondents

respondents’ role • 19% work in CI • 25% work in Market Research • 56% work in both CI and Market

Research

5




Introduction

What is the Growth Team Membership™?

GTM is a subscription program that supports executives within the functions that report to the CEO

GTM provides best practices, events, and services that enable executives to address challenges within their companies

CCorporateStrategy

Coorrppoorrate DDevelopment

Marketing

CompetitiivveeIInntteelllliigence

MMarketResearch

SalesLeadershipp

R&D/IInnnnoovvation

IInnvvestors/Finance

CEO

MarketResearch

CompetitiveIntelligence

CEO’s Growth Team™ GTM: Creating Client Value

GTM’s case-based best practices help executives:

Speed the design and implementation of initiatives by not reinventing the wheel

Save money and reduce risk by avoiding mistakes made by other companies

Accelerate problem-solving with a cross-industry perspective

Improve their functions’ and companies’ performance and productivity

[email protected] www.gtm.frost.com slideshare.net/FrostandSullivantwitter.com/Frost_GTM

mailto:[email protected]

http://www.gtm.frost.com

http://www.slideshare.net/FrostandSullivan

https://twitter.com/#!/Frost_GTM

6




Introduction

Contact us at GTMResearch@frost .com .

Balancing the Research PortfolioStaffing limitations and stagnating budgets require market research and competitive intelligence executives to create a higher return on their resources, by prioritizing project requests based on revenue potential and strategic value .

Learn how L3 developed a system to prioritize its project portfolio, allocate resources, and reduce redundant requests.

Driving Strategic Decision-Making

CI executives need to develop a methodology for identifying emerging challenges, creating insightful action plans, and supporting strategy formulation .

Learn how Merck used scenario planning to identify long-term threats and opportunities and incorporate new insights into strategy planning .

Integrating Customer InsightsIn its efforts to support Marketing, market research executives struggle with integrating global, regional, and local customer information to generate insights and capture voice of the customer .

Learn how our Customer Strategy toolkit helps you collect and prioritize customer insights and share customer intelligence throughout your organization .

Market Research and Competitive Intelligence Overarching Challenges

Best Practice Solutions from GTM

What’s Keeping Market Research and Competitive Intelligence Executives Up at Night in 2012?

mailto:[email protected]

http://www.frost.com/prod/servlet/cpo/248798727



7




SECTION

6

SECTION

5

SECTION

4

SECTION

3

SECTION

2

SECTION

1

INTRO

SECTION

1 Key Market Research Challenges

8




Section 1

Challenge 1 Ensuring internal clients/stakeholders integrate research insights with their decision-making (15%)

Challenge 2 Engaging internal clients/stakeholders to pinpoint their research needs (12%)

Challenge 3 Integrating global, regional, and local customer/market information to generate insights (14%)

Challenge 4 Demonstrating the ROI of market research (13%)

Challenge 5 Maintaining a portal for centralized knowledge management (19%)

Top Five Market Research Challenges

SURVEY QUESTION: Please indicate the top five functional challenges shaping your market research strategy in 2012.

Note: The respondents were asked to rank their top five challenges. The percentage values indicate how many respondents listed that particular challenge as their first through fifth challenge.

9




Section 1

B-to-B executives are struggling to support decision-making, while B-to-C executives are focusing on balancing their project portfolios

Top Five Market Research Challenges (By Business Model)

B-to-B B-to-C

Challenge 1Ensuring internal clients/stakeholders integrate research insights with their decision-making (15%)

Ensuring the research portfolio balances strategic and tactical projects (14%)

Challenge 2 Communicating data and insights in an actionable manner (14%)

Engaging internal clients/stakeholders to pinpoint their research needs (11%)

Challenge 3Integrating global, regional, and local customer/market information to generate insights (13%)

Integrating global, regional, and local customer/market information to generate insights (17%)

Challenge 4 Creating an insight generation process that yields high-quality information (18%)

Ensuring internal clients/stakeholders integrate research insights with their decision-making (18%)

Challenge 5 Maintaining a portal for centralized knowledge management (16%)

Maintaining a portal for centralized knowledge management (22%)


10




Section 1

The root causes of Market Research’s top challenges include people, process, and alignment

SURVEY QUESTION: Please indicate if the root cause of your top five functional challenges are—staff, process, technology/systems, or strategic alignment.

Root Cause of Top Five Market Research ChallengesTop Five Market Research Challenges

Challenge 1Ensuring internal clients/stakeholders integrate research insights with their decision-making

Strategic Alignment: Insufficient senior management support (50%)

Challenge 2 Engaging internal clients/stakeholders to pinpoint their research needs Process: Ineffective process (55%)

Challenge 3Integrating global, regional, and local customer/market information to generate insights

Staff: Limited resources (50%)

Challenge 4 Demonstrating the ROI of market research Process: Lack of process (57%)

Challenge 5 Maintaining a portal for centralized knowledge management

Process: Inadequate communication (18%)


11




SECTION

6

SECTION

5

SECTION

4

SECTION

3

SECTION

2

SECTION

1

INTRO

SECTION

2 Market Research Resource Trends

12




Section 2

Market research departments in B-to-C companies tend to have larger budgets

2012 Market Research Budgets (By Business Model)

SURVEY QUESTION: Please indicate your 2012 total market research budget (all expenditures on market research activities and general & administrative—including staff) in the above US$ ranges .

F

FF

F

F F F0%

10%

20%

30%

40%

50%

60%

70%

63%

43%

14%11%

14%17%

5%

14%

2%

6%

0%

6%

2% 3%

54%

13% 15%

9%

4%3% 2%

The red percentages are for all respondents .

$500,000 to $999,999

Below $500,000 $1 Million to $2.99 Million

$3 Million to $4.99 Million



$20 Million or more

All Companies B-to-B Companies B-to-C Companies

13




Section 2

Market research departments in B-to-B companies allocate more of their budgets to product development testing and pricing research

Budget Allocations Across Research Types (By Business Model)

SURVEY QUESTION: How have you allocated your market research project portfolio across the above research categories?

F

F

F

F

F

F

F

F

Market Size/Structure

Product/Service Development

and Testing

Branding, Messaging, and

Marketing Communications

Customer/Consumer Behavior

Pricing Research Customer Satisfaction/

Market Tracking

Business/Competitive Intelligence

Competitive Analysis

0%

10%

20%

18%

15%

10%

5% 5% 5%

10% 10%

5% 5% 5%

10% 10%

5% 5%

15%

10%

5%

10%

0%

5%

10%

5%

0%



14




Section 2

Most of Market Research’s vendor budget is spent on outsourcing customized primary research

Market Research’s Budget Allocated to Vendors (By Business Model)

Vendor Budget Allocations by Research Types (By Business Model)

SURVEY QUESTION: What percentage of your vendor/supplier resources have you allocated across the above types of research in 2012?

SURVEY QUESTION: What percent of your budget is allocated to vendors/suppliers?


Syndicated Research 15% 11% 15%

Customized Secondary Research (e .g ., specialized market analysis) 10% 10% 10%

Customized Primary Research (e .g ., surveys, focus groups) 40% 40% 45%


65%60%65%

15




Section 2

Marketing accounts for most of Market Research’s projects

Market Research’s Top Three Clients (By Business Model)

SURVEY QUESTION: Please identify your top three internal clients (in terms of the percentage of your research portfolio they account for) .

Strategy/Planning (23%)

Marketing (57%)Marketing (38%)

Sales/Business Development (31%)

CEO/President/General Manager (21%)

Marketing (47%)





B-to-C CompaniesAll Companies B-to-B Companies

16




Section 2

The majority of respondents expect staffing levels to stay the same in 2012

Market Research Staff Changes (By Business Model)

SURVEY QUESTION: In comparison to 2011, your 2012 market research staffing will…

5%

3%

68%

19%

Stay the Same

Decrease Moderately Decrease Substantially Increase Substantially

Increase Substantially

Increase Moderately

All Companies

B-to-C Companies

B-to-B Companies

8%

65%

16%

Stay the Same

Decrease Moderately Decrease Substantially

Decrease Substantially

Increase Moderately

5%

5%5%

5%3%

71%

21%

Stay the Same

Decrease Moderately Increase Moderately

17




Section 2

Market researchers expect their budgets to remain static in 2012

Market Research Budget Changes (By Business Model)

SURVEY QUESTION: In comparison to 2011, your 2012 market research budget will…

14%

3%

46%

29%

Stay the Same

Decrease Moderately

Decrease SubstantiallyIncrease Substantially


Increase Moderately

All Companies

B-to-C Companies

B-to-B Companies

22%

8%

35%

30%

Stay the Same

Decrease Moderately



Increase Moderately

8%

5%

9%

55%

29%

7%

Stay the Same

Decrease Moderately

Increase Moderately

18




Section 2

Respondents indicate their departments are “Above Average” in comparison to their peers

Market Research’s Effectiveness (By Business Model)

SURVEY QUESTION: How would you rate the performance or effectiveness of your function compared to others within your industry?

All Companies B-to-B Companies

B-to-C Companies

5%

3%

2%

3%2%

7%

44% 46%

42%

38% 35%

42%

10%14%

7%

Above Average Above Average

Above Average

Exceptional Exceptional

Exceptional

Below Average

Poor

Poor

Poor

Below Average

Below Average

Average Average

Average

19




SECTION

6

SECTION

5

SECTION

4

SECTION

3

SECTION

2

SECTION

1

INTRO

SECTION

3 Key Competitive Intelligence Challenges

20




Section 3

Challenge 1 Aligning Key Intelligence Topics (KITs) to the company’s strategic priorities (19%)

Challenge 2 Capturing the competitive information held by your company’s employees (20%)

Challenge 3 Incorporating competitive intelligence insights into the company’s revenue-generating activities (11%)

Challenge 4 Creating and/or managing a portal to centralize CI-related information for the company (16%)

Challenge 5 Developing a methodology for identifying emerging challenges (12%)

Top Five Competitive Intelligence Research Challenges

SURVEY QUESTION: Please indicate the top five functional challenges shaping your competitive intelligence strategy in 2012.


21




Section 3

CI departments in B-to-B companies are focused internally on process and communication, while their peers in B-to-C companies are looking outward to revenue generation and counter-intelligence

Top Five Competitive Intelligence Challenges (By Business Model)

B-to-B B-to-C

Challenge 1Aligning Key Intelligence Topics (KITs) to the company’s strategic priorities (21%)

Diagnosing internal clients/stakeholders’ specific intelligence needs (22%)

Challenge 2 Capturing the competitive information held by your company’s employees (28%)

Incorporating competitive intelligence insights into the company’s revenue-generating activities (15%)

Challenge 3Packaging and communicating competitive data and insights to drive stakeholder decision-making (13%)

Capturing the competitive information held by your company’s employees (28%)

Challenge 4Creating and/or managing a portal to centralize CI-related information for the company (19%)

Packaging and communicating competitive data and insights to drive stakeholder decision-making (11%)

Challenge 5 Identifying and implementing the “right” CI tools (15%)

Developing, implementing, and monitoring counter-intelligence tactics (12%)


22




Section 3

Lack of process is the primary cause of Competitive Intelligence’s challenges

SURVEY QUESTION: Please indicate if the root cause of your top five functional challenges are—staff, process, technology/systems, or strategic alignment.

Root Cause of Top Five Competitive Intelligence ChallengesTop Five Competitive Intelligence Challenges

Challenge 1 Aligning Key Intelligence Topics (KITs) to the company’s strategic priorities

Process: Lack of process (25%)

Strategic Alignment: Lack of common objectives (25%)

Challenge 2 Capturing the competitive information held by your company’s employees Process: Lack of process (60%)

Challenge 3Incorporating competitive intelligence insights into the company’s revenue-generating activities

Process: Lack of process (33%)

Challenge 4Creating and/or managing a portal to centralize CI-related information for the company


Challenge 5 Developing a methodology for identifying emerging challenges Process: Lack of or inefficient process (57%)

23




SECTION

6

SECTION

5

SECTION

4

SECTION

3

SECTION

2

SECTION

1

INTRO

SECTION

4 Competitive Intelligence Resource Trends

24




Section 4

The majority of competitive intelligence budgets are less than $500,000

2012 Competitive Intelligence Budgets (By Business Model)

SURVEY QUESTION: Please indicate your 2012 total competitive intelligence budget (all expenditures on competitive intelligence activities and general & administrative—including staff) in the above US$ ranges.


F

FF

FF F

F0%

10%

20%

30%

40%

50%

60%

70% 67%

60%

21%

11%9%

17%

0%3%

0%

6%3% 3%

0% 0%

63%

17%

14%

1% 3%2%

0%


$500,000 to $999,999

Below $500,000 $1 Million to $2.99 Million




$20 Million or more

25




Section 4

Competitive intelligence departments tend to outsource secondary research

Competitive Intelligence Budget Allocated to Vendors (By Business Model)

Vendor Budget Allocations by Research Type (By Business Model)

SURVEY QUESTION: What percentage of your vendor/supplier resources have you allocated across the above types of research in 2012?

SURVEY QUESTION: What percentage of your 2012 competitive intelligence budget is allocated to vendors/suppliers?


Syndicated Research 3% 0% 5%

Customized Secondary Research (e .g ., specialized market analysis) 15% 15% 20%

Customized Primary Research (e .g ., surveys, focus groups) 10% 10% 10%


50%43%43%

26




Section 4

CI departments in B-to-C companies are just as likely to report into Strategy as Marketing

Direct Line Reporting of Competitive Intelligence Function (By Business Model)

SURVEY QUESTION: To which department does your competitive intelligence function directly report?

F

F

F

FF

F

Marketing Strategy/Planning Sales/Business Development

R&D/Innovation CEO/President/General Manager

Finance0%

10%

20%

30%

40%

50%

46%

35%

24%

35%

15%13%

7%

13%

5% 4% 3%

0%

42%

29%

14%

8%5%

2%



27




Section 4


Marketing (36%)Marketing (33%)



Marketing (34%)




CI departments in B-to-B companies are more likely than their B-to-C counterparts to support revenue-generating activities

Competitive Intelligence’s Top Three Clients (By Business Model)


SURVEY QUESTION: Please identify your top three internal clients (in terms of the percentage of your research portfolio they account for) .

28




Section 4

CI staffing levels are expected to remain static in 2012

Competitive Intelligence Staff Changes (By Business Model)

SURVEY QUESTION: In comparison to 2011, your 2012 competitive intelligence staffing will…

5%

3%

69%

16%

Stay the Same

Decrease Moderately




Increase Moderately

All Companies

B-to-C Companies

B-to-B Companies

3% 3%

69%

19%

Stay the Same

Decrease Moderately




Increase Moderately

7%

6%

7%

3%

71%

14%

5%

Stay the Same

Decrease Moderately

Increase Moderately

29




Section 4

CI budgets will remain unchanged in 2012

Competitive Intelligence Budget Changes (By Business Model)

SURVEY QUESTION: In comparison to 2011, your 2012 competitive intelligence budget will…

12%

1%

54%

28%

Stay the Same

Decrease Moderately




Increase Moderately

All Companies

B-to-C Companies

B-to-B Companies

15%

46%

33%

Stay the Same

Decrease Moderately



Increase Moderately

5%

6%

5%

2%

59%

25%

9%

Stay the Same

Decrease Moderately

Increase Moderately

30




Section 4

Respondents in B-to-B companies are more confident about their departments’ effectiveness than their B-to-C peers

Competitive Intelligence’s Effectiveness (By Business Model)

SURVEY QUESTION: How would you rate the performance or effectiveness of your function compared to others within your industry?

All Companies B-to-B Companies

B-to-C Companies

6%

2%

5%

2%

9%

37% 43%

27%

28% 20%

40%

27% 30%

24%

Above AverageAbove Average

Above Average

Exceptional Exceptional

Exceptional

Below Average

PoorPoor

Below Average

Below Average

Average Average

Average

31




SECTION

6

SECTION

5

SECTION

4

SECTION

3

SECTION

2

SECTION

1

INTRO

SECTION

5 Special Interest Topic: Tools of the Trade

32




Section 5

Respondents primarily use keyword and media-monitoring tools

Top Five Tools (By Business Model)

SURVEY QUESTION: Please indicate the tools/software your department commonly uses (check all that apply) .

Automated Collection (51%)

Buzz [news and media analysis] (46%)

Key Word Feeds (45%)

Keyword Research and Tracking (67%)


Media Monitoring (64%)

Buzz [news and media analysis] (47%)


Buzz [social media analysis] (35%)


Media Monitoring (64%) Media Monitoring (65%)


Key Word Feeds (50%)

Online or Traditional Clipping Services (48%)


33




Section 5

Social media is primarily used to monitor competitors’ product or service development activities

Purpose of Top Six Social Media Activities

SURVEY QUESTION: What is the primary purpose of your department’s social media use?

59% Use

Tracking competitor product/service development (32%)

57% Use


57% Use

Following key influencers (29%)

40% Use


40% Use


38% Use

Capturing voice of the customer (35%)

Special interest blogs/forums/communities

Company blogs/forums

Professional networking sites (e .g ., LinkedIn)

Social networking sites (e .g ., Facebook)

Video Sharing (e .g . You Tube)

Microblogs (e .g ., Twitter)

34




Section 5

Respondents are less likely to use social media to track voice of the customer or gather competitive insights from employees

Purpose of Bottom Six Social Media Activities

SURVEY QUESTION: What is the primary purpose of your department’s social media use?

34% Use


Following key influencers (26%)

27% Use

Capturing competitive insights from your employees (55%)

27% Use


25% Use

Capturing competitive insights from your employees (29%)

12% Use


12% Use

Benchmarking (32%)

Personal blogs

Internal company social networking sites (e .g ., Yammer)

SlideShare

Wikis

Consumer review sites (e .g ., Yelp)

Employee review sites (e .g ., Glassdoor)

35




Section 5

Respondents are confident in their ability to leverage special interest blogs, forums, and communities for research

Effectiveness of Social Media Activities

SURVEY QUESTION: How would you rate the effectiveness of your department’s social media use efforts?

Social Networking Sites (e.g., Facebook)

Professional Networking Sites (e.g., LinkedIn)

Internal Company

Social Networking Sites (e.g., Yammer)

Consumer Review Sites

(e.g., Yelp)

Employee Review Sites

(e.g., Glassdoor)

Company Blogs/Forums

Special Interest Blogs/

Forums/Communities

Personal Blogs Microblogs (e.g., Twitter)

Wikis SlideShare Video Sharing (e.g., YouTube)

0%

50%

100%

19%

13%

52%

16%

12%

15%

59%

12%

2%

21%

21%

41%

17%

25%

25%

30%

20%

21%

10%

58%

11%

12%

17%

46%

20%

5%

7%

14%

48%

29%

2%

8%

13%

62%

13%

4%

14%

25%

47%

14%

16%

32%

47%

5%

24%

5%

42%

29%

15%

7%

59%

11%

8%

Poor Below Average Average Above Average Exceptional

36




SECTION

6

SECTION

5

SECTION

4

SECTION

3

SECTION

2

SECTION

1

INTRO

SECTION

6 Respondent Demographics

37




Section 6

Respondent Demographics

SURVEY QUESTION: Please indicate the type of enterprise, business model, and revenue that best represents your company .

N = 154

N = 159N = 159

Enterprise Type Business Model

Company Revenue

44%

6%

6%2%

2%

40%

17%

26%

57%

Public

Private

B-to-B Company

HybridVenture Capital

Government/Public Sector Not for Profit

0%

30%

60%

13%17%

11%

35%

24%

Below $100 Million



$1 Billion to $11 Billion

More than $11 Billion

B-to-C (Direct) Company

B-to-C (Indirect) Company

The majority of the respondents work in B-to-B companies .

Most of the respondents work in privately held companies .

38




Section 6

Electronics and Security

Chemicals, Materials, and Food

SURVEY QUESTION: Please indicate which region you are located in and which industry categories best describe your company (check all that apply) .

Respondent Demographics: Region and Top Five Participating Industries

N = 158

N = 158

0% 20% 40%

34%

27%

16%

15%

14%

IndustriesRegion

Americas

Middle East

OtherAfrica

Asia Pacific

Europe

Automotive and Transportation

Healthcare and Life Sciences

Information and Communication Technologies

52%

15%

3%

1%2%

27%