growth team membership- 2011 market research and competitive intelligence priorities survey results

growth team m e m b e rs h i p™

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2011 Market Research and Competitive Intelligence Priorities Survey Results

Americas and Europe

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . 2What is the Growth Team Membership™ . . . . . . 3Survey Purpose and Respondents . . . . . . . . . . . . . 4

Competitive Intelligence Effectiveness and Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . 30

Competitive Intelligence and Technology . . . . . . 37Market Research and Competitive Intelligence Overarching Challenges . . . . . . . . . . 42

Respondent Demographics . . . . . . . . . . . . . . . . . 43

External Factors Shaping Market Research and Competitive Intelligence’s Strategies . . . . . . . 5

Key Market Research Challenges . . . . . . . . . . . . . 9

Market Research Effectiveness and Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . 14

Key Competitive Intelligence Challenges . . . . . . 25

2011 survey resultsgrowth team m e m b e rs h i p™

Source: Growth Team Membership™ research.

market research

competitive intelligence (ci)

Key Internal Challenge Internal Challenge Root CauseThe challenge is engaging internal clients to pinpoint research needs

The challenge’s root cause is lack of support by senior management

Key Internal Challenge Internal Challenge Root CauseThe challenge is aligning Key Intelligence Topic [KITs] to the company’s strategic priorities

The root cause of the challenge is lack of support by senior management

Resources Vendor Allocations Research FocusMarket research budgets and staffing will remain static in 2011

Respondents see no change in budget allocations to vendors in 2011

Respondents are focusing on supporting Marketing with market size and structure analysis

Executive Summary

Resources CI Direct Report CI ToolsCompetitive intelligence budgets and staffing will remain static in 2011

CI tends to report directly to marketing departments

Respondents rely heavily on keyword tracking and feed tools

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Survey Purpose and Respondents

In Cooperation withSurvey PopulationMethodologyResearch Objective

To understand the most pressing external and internal challenges shaping market research and competitive intelligence executives’ 2011 planning .

Web-based survey platform Target respondents were Manager level and above market research and competitive intelligence executives from companies throughout North America, Latin America, and Europe .

206survey

respondents

External Factors Shaping Market Research and Competitive Intelligence’s Strategies

Strategy planning by executives in competitive intelligence and market research is influenced by opportunities in new markets and shifts in customer purchasing behavior

Top Three External Factors

Survey Question: Please specify the Top Three external factors shaping your market research and competitive intelligence strategy in 2011 .

External Factor 1 Emerging global markets (20%)

External Factor 2 Need for product and service innovation (19%)

External Factor 3 Changes in customer buying behavior (13%)

B-to-B B-to-C Hybrid

External Factor 1 Emerging global markets (24%)

Need for product and services innovation (39%)

Government regulation and policy (22%)

External Factor 2 Need for product and services innovation (20%)

Increasing number of competitors (15%)

Need for product and services innovation (20%)

External Factor 3 Rapid pace of technology advances (15%)

Emerging global markets (23%)

Changes in customer buying behavior (20%)

External challenges remain consistent across business models

Top Three External Factors (By Business Model)

External Factors Impact on Market Research and Competitive Intelligence

Survey Question: Please indicate if the following factors present a challenge or an opportunity for your 2011 market research and competitive intelligence strategy .

Challenges for Market Research and

Competitive Intelligence

Changes in customer buying behavior (59%)

Opportunities for Market Research and

Competitive Intelligence

Emerging global markets (94%)

Need for product and service innovation (76%)

Key Market Research Challenges

Key Market Research Challenges Snapshot

Engaging internal clients/stakeholders to pinpoint their

research needs

Challenge 1

Identifying and prioritizing future trends/megatrends

Challenge 1

Engaging internal clients/stakeholders to pinpoint their

research needs

Challenge 1

Contributing to the company’s strategic priorities

Challenge 3

Identifying and synthesizing disparate information sources

Challenge 3

Driving high quality contributions from suppliers/agencies

Challenge 3

Ensuring internal clients/stakeholders integrate research

insights into their decision making

Challenge 2

Ensuring internal clients/stakeholders integrate research

insights into their decision making

Challenge 2

Screening project requests to ensure only high value-added requests are included in the research portfolio/agenda

Challenge 2

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

Market researchers struggle with the complex issue of of client support—ranging from identifying research needs to disseminating data

Top Five Key Market Research Challenges

Survey Question: Please indicate the top five functional challenges shaping your market research strategy in 2011 .

Challenge 1 Engaging internal clients/stakeholders to pinpoint their research needs (14%)

Challenge 2 Ensuring internal clients/stakeholders integrate research insights into their decision making (13%)

Challenge 3 Contributing to the company’s strategic priorities (14%)

Challenge 4 Maintaining a portal for centralized knowledge management (12%)

Challenge 5 Communicating data and insights in an actionable manner (14%)

Market researchers’ key challenges vary greatly by business model

Top Five Market Research Challenges (By Business Model)

Challenge 1Identifying and prioritizing future trends/megatrends (15%)

Engaging internal clients/stakeholders to pinpoint their research needs (40%)

Ensuring the research portfolio/agenda contains the right balance of strategic and tactical projects (19%)

Challenge 2

Ensuring internal clients/stakeholders integrate research insights into their decision making (13%)

Screening project requests to ensure only high value-added requests are included in the research portfolio/agenda (20%)

Identifying and prioritizing future trends/megatrends (21%)

Challenge 3Identifying and synthesizing disparate information sources (14%)

Driving high quality contributions from suppliers/agencies (40%)

Contributing to the company’s strategic priorities (25%)

Challenge 4Maintaining a portal for centralized knowledge management (13%)

Allocating resources to project requests based on project value and impact (40%)

Engaging internal clients/stakeholders to pinpoint their research needs (17%)

Challenge 5Communicating data and insights in an actionable manner (15%)

Developing actionable customer segmentation models (40%)

Screening project requests to ensure only high value-added requests are included in the research portfolio/agenda (17%)

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

Challenge 1Engaging internal clients/stakeholders to pinpoint their research needs

Strategic Alignment: Insufficient senior management support (31%)

Challenge 2Ensuring internal clients/stakeholders integrate research insights into their decision making

Challenge 3Contributing to the company’s strategic priorities

Challenge 4Maintaining a portal for centralized knowledge management

Technology/Systems: Inappropriate technology used (30%)

Challenge 5Communicating data and insights in an actionable manner

Market research’s challenges are predominantly caused by insufficient support from senior management

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

Market Research Effectiveness and Expenditures

Market Research Expenditures and Effectiveness Snapshot

Respondents rank their market research function’s effectiveness as “Average”

Marketing is Market Research’s primary internal client

The principal research focus for market researchers is market size and structure

analysis

Respondents expect their 2011 staffing levels to stay the same

Respondents expect their 2011 market research budgets to stay the same

Respondents rank their market research function’s effectiveness as “Above

Average”

Sales/Business Development is Market Research’s primary internal client

The principal research focus area for market researchers is business

intelligence

Respondents rank their market research function’s effectiveness as “Above

Average”

Marketing is Market Research’s primary internal client

The principal research focus for market researchers is market size and structure

analysis

12% 11%

37%40% 44%

Respondents from Hybrid companies are more than twice as likely to consider their function’s effectiveness as “Exceptional”

Market Research’s View of Its Effectiveness (By Business Model)

Survey Question: Please assess the overall effectiveness of your market research function compared to those in other firms within your industry .

All Companies B-to-B Companies

Hybrid Companies B-to-C Companies

Above AverageAbove Average

Above Average

Exceptional Exceptional

Exceptional

Below Average Below Average

Below Average

Average Average

AverageAverage

40%38%

0% 0% 0%

20%15%

The majority of market research budgets are under $3 million

2010 Market Research Budgets (By Business Model)

Survey Question: Please indicate your 2010 total market research budget (all expenditures primary and secondary syndicated and other research but excluding general & administrative expenses such as salaries) in the following US$ ranges .

The red percentages are for all respondents .

Less than $500,000

$500,000 to $999,999

$1 Million— $2.99 Million

$10 Million to $19.99 Million

$20 Million or more

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

Marketing accounts for the bulk of market research’s projects

Top Four Internal Clients

Survey Question: Please rank the following internal clients on the percentage of your work they account for:

Client 1 Marketing (39%)

Client 2 Strategy/Planning (29%)

Client 3 Sales/Business Development (27%)

Client 4 CEO/President/ General Manager (27%)

Market researchers from B-to-B companies are more likely to support the revenue generating activities of Business Development

Top Four Internal Clients (By Business Model)

Client 1 Sales/Business Development (31%)

Marketing (60%) Marketing (58%)

Client 2 Marketing (33%)CEO/President/General Manager (25%)

Strategy/Planning (38%)

Client 3 Strategy/Planning (35%) Strategy/Planning (50%)Sales/Business Development (38%)

Client 4 CEO/President/General Manager (29%)

R&D/Innovation (50%) R&D/Innovation (25%)

15% 15%

10%10%

10%10% 10%10%10%

5% 5% 5%

10%10% 10%10%10%

0% 0% 0% 0% 0% 0%

10% 10%

Respondents in B-to-B companies are likely to attribute twice as much of their research portfolio to business intelligence activities

Research Portfolio (By Business Model)

Survey Question: Please classify your total 2010 market research project portfolio into the following research categories .

Market Size/Structure

Product/Service Development

and Testing

Branding, Messaging

and Marketing Communications

Consumer/Customer Behavior

Pricing Research

Customer Satisfaction/

Market Tracking

Business/Competitive Intelligence

Competitive Analysis

BenchmarkingPost-Market Entry

Evaluations

Personnel/Staffing Market Size/Structure Product/Service Development and Testing Branding, Messaging and Marketing Communications Consumer/Customer Behavior Pricing Research Customer Satisfaction/Market Tracking Business/Competitive Intelligence Competitive Analysis Post-Market Entry Evaluations Benchmarking

17%47%

7%7% 7% 7%

13%13%

In general, respondents foresee no change in the number of vendors they work with in 2011

2011 Number of Vendors (By Business Model)

Survey Question: In comparison to 2010, in 2011 the number of vendors/suppliers you work with will:

Hybrid Companies B-to-C Companies

Stay the Same

Decrease Moderately (10%)

Decrease Slightly (5%)

Decrease Substantially (25%)

Increase Substantially (25%)

Increase Moderately (10%)

Increase Slightly (5%)

Stay the Same

20% 19%

6% 7%5%6%

25%25%

Budget allocations to vendors are expected to remain constant in 2011

2011 Vendors Budget (By Business Model)

Survey Question: In comparison to 2010, in 2011 the percentage of your market research budget allocated to vendors will:

Hybrid Companies

Stay the Same

Decrease Substantially (25%) Increase Substantially (25%)

Increase Slightly (5%)Stay the Same

Stay the Same

Increase Moderately (10%)Increase Moderately (10%)

B-to-C Companies

11% 11%

22% 21%

25%25%

63% 63%

75%58%

Regardless of business model, market research foresees no additional staff members in 2011

Market Research Staffing 2011(By Business Model)

Survey Question: In comparison to 2010, your 2011 market research staffing will:

Hybrid Companies B-toC Companies

Stay the Same Stay the Same

Stay the SameStay the Same

Decrease Moderately Decrease Moderately

Decrease Moderately

Increase Substantially Increase Substantially

Increase Substantially

Increase Moderately Increase Moderately

Increase ModeratelyIncrease Moderately

Market research budgets will remain static in 2011

Market Research Budget 2011(By Business Model)

Survey Question: In comparison to 2010, your 2011 market research budget will:

Hybrid Companies

Decrease Moderately

Decrease Substantially Increase Substantially

Increase Moderately

Stay the Same

Decrease Moderately

Decrease Substantially

Increase Moderately

Stay the Same

B-to-C Companies

Key Competitive Intelligence Challenges

Key Competitive Intelligence (CI) Challenges Snapshot

Aligning Key Intelligence Topic (KITs) to the company’s strategic

priorities

Challenge 1

Aligning Key Intelligence Topic (KITs) to the company’s strategic

priorities

Challenge 1

Developing competitive technical intelligence capabilities

Challenge 1

Using informal networks to capture the competitive information held by

the company’s employees

Challenge 3

Evaluating and prioritizing ad hoc requests based on their value

Challenge 3

Using informal networks to capture the competitive information held by

the company’s employees

Challenge 3

Packaging and communicating competitive data and insights to

drive stakeholder decision making

Challenge 2

CI executives emphasize the perennial challenges of driving strategic decision-making and capturing the knowledge of employees

Top Five Key Competitive Intelligence Challenges

Survey Question: Please indicate the top five functional challenges shaping your competitive intelligence strategy in 2011 .

Challenge 1 Aligning Key Intelligence Topic [KITs] to the company’s strategic priorities (17%)

Challenge 2 Packaging and communicating competitive data and insights to drive stakeholder decision making (14%)

Challenge 3 Using informal networks to capture the competitive information held by the company’s employees (14%)

Challenge 4 Entrenching competitive intelligence insights in the company’s revenue-generating activities, e .g ., Sales (13%)

Challenge 5 Using social media to capture competitive intelligence (13%)

Respondents across all business models are challengedby driving strategic decision-making

Top Five Competitive Intelligence Challenges (By Business Model)

Challenge 1

Aligning Key Intelligence Topic [KITs] to the company’s strategic priorities (17%)

Developing competitive technical intelligence capabilities (20%)

Aligning Key Intelligence Topic [KITs] to the company’s strategic priorities (16%)

Challenge 2

Packaging and communicating competitive data and insights to drive stakeholder decision making (12%)

Challenge 3Evaluating and prioritizing ad hoc requests based on their value (14%)

Using informal networks to capture the competitive information held by the company’s employees (20%)

Creating effective and timely Competitive Alerts (18%)

Challenge 4

Evaluating and prioritizing ad hoc requests based on their value (20%)

Entrenching competitive intelligence insights in the company’s revenue-generating activities, e .g ., Sales (13%)

Challenge 5 Using social media to capture competitive intelligence (15%)

Identifying and implementing the “right” CI software (20%)

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

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

Challenge 2Packaging and communicating competitive data and insights to drive stakeholder decision making

Staff: Limited resources (27%)

Challenge 3Using informal networks to capture the competitive information held by the company’s employees

Process: Lack of process (33%)

Challenge 4Entrenching competitive intelligence insights in the company’s revenue-generating activities, e .g ., Sales

Process: Ineffective process (17%)

Challenge 5Using social media to capture competitive intelligence

Technology/Systems: Inadequate/ outdated technology (33%)

The root causes of CI’s challenges are highly variable

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

Competitive Intelligence Effectiveness and Expenditures

Competitive Intelligence Expenditures and Effectiveness Snapshot

Respondents rank their competitive intelligence function’s effectiveness as

“Average”

The competitive intelligence function tends to report directly to Marketing

Respondents expect their 2011 competitive intelligence budgets to

increase moderately

“Above Average”

Respondents expect their 2011 competitive intelligence budgets to stay

the same

“Average”

Respondents expect their 2011 competitive intelligence budgets to stay

the same

6% 9%9%

CI executives are likely to consider their functions effectiveness as either “Average” or “Above Average”

Competitive Intelligence’s View of Its Effectiveness (By Business Model)

B-to-C CompaniesHybrid Companies

Above Average Above Average

Above Average

Exceptional Exceptional

ExceptionalExceptional

Below Average Below Average

Below AverageBelow Average

Average

Survey Question: Please assess the overall effectiveness of your competitive intelligence function in compared to those in other firms within your industry:

16%18%

13% 12%

13% 18%

CI departments in Hybrid companies are more likely to report directly to Corporate Strategy than respondents from other business models

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

Survey Question: Your CI department reports directly to what department?

Marketing Market Research Strategy/Planning Sales/Business Development

R&D/Innovation CEO/President/General Manager

Finance

Survey Question: Please indicate your 2010 total competitive intelligence budget (all expenditures on competitive intelligence activities but excluding general & administrative expenses such as staff) in US$ .

69%70%

13%10%

0%3% 1%

0% 0% 0% 0% 0% 0%

2% 0% 0%4%

The majority of respondents have budgets under $250,000

Competitive Intelligence Budget (By Business Model)

Less than $250,000

$250,000 to $499,999

$500,000 to $999,999

$5 Million or more

Survey Question: In comparison to 2010, your 2011 competitive intelligence staff will:

In general, CI executives expect no change in staffing levels for 2011

Competitive Intelligence Staffing 2011 (By Business Model)

22%33%

3%3%3%

65%68%

81% 44%

Decrease SubstantiallyDecrease Substantially

Increase SubstantiallyIncrease Substantially

Increase Moderately

Survey Question: In comparison to 2010, your 2011 competitive intelligence budget will:

Respondents from B-to-C companies are more likely to see an increase in their 2011 budgets

Competitive Intelligence Budget 2011 (By Business Model)

Stay the Same Stay the Same

Decrease Substantially Decrease Substantially

Increase Substantially Increase Substantially

Increase ModeratelyIncrease Moderately

Competitive Intelligence and Technology

Keyword Research and Tracking are the primary tools used by

CI executives

Market research activities are the primary focus of CI teams

Competitive Intelligence and Technology Snapshot

Respondents rely on traditional tools such as keyword tracking and feeds

Top Five Competitive Intelligence Tools/Software

Tools/Software 1 Keyword Research and Tracking (35%)

Tools/Software 2 Media Monitoring (26%)

Tools/Software 3 Key Word Feeds (19%)

Tools/Software 4 Buzz [News and Media Analysis] (18%)

Tools/Software 5 Web Crawlers (16%)

Survey Question: Please indicate the CI tools/software you commonly use (check all that apply) .

The tools utilized by CI executives vary only by prioritization across business models

Top Five Competitive Intelligence Tools/Software (By Business Model)

Tools/Software 1 Keyword Research and Tracking (42%)

Keyword Research and Tracking (43%)

Media Monitoring (29%)

Tools/Software 2 Media Monitoring (28%) Automated Collection (36%)Keyword Research and Tracking (26%)

Tools/Software 3 Key Word Feeds (24%)Buzz [News and Media Analysis] (29%)

Online or Traditional Clipping Services (20%)

Tools/Software 4 Online or Traditional Clipping Services (21%)

Key Word Feeds (29%) Automated Collection (13%)

Tools/Software 5 Automated Collection (21%)Buzz [Social Media Analysis] (21%)

Patent Analysis (11%)

Survey Question: Please indicate the primary focus of your CI activities .

0% 0% 0%

Market research is the primary focus of CI projects

Competitive Intelligence Project Focus Areas (by Business Model)

Technical Regulatory Customer M&A Activity Market

The Growth Team Membership™ (GTM) is an annual subscription program that supports executives in Marketing, Sales Leadership, Corporate Strategy, Corporate Development, R&D/Innovation, Market Research, and Competitive Intelligence . GTM offers best practices research, events, and services to address the internal challenges executives face . Contact us at GTMResearch@frost .com .

The Top Overarching Challenges Affecting Market Research and Competitive Intelligence Executives

what’s keeping market research and competitive intelligence executives up at night in 2011?

Market Research and Competitive Intelligence Overarching Challenges

Sample Solutions from the Growth Team Membership

Prioritizing the Research PortfolioStaffing limitation and stagnating budgets require market research and competitive intelligence executives to develop a system to prioritize project requests based on revenue and strategic value—creating a higher return on their resources .

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

Driving Strategic Decisions

Competitive intelligence and market research executives struggle with driving stakeholder decision making with relevant and actionable insights .

Learn how our Competitive Strategies toolkit enables unbiased identification of company strengths, high-growth opportunities, competitors’ behaviour and strategies resulting in analysis of potential responses to competitive threats, with a focus on long-term cause-and-effect scenario planning .

Respondent Demographics

Survey Question: Please indicate the type of enterprise best represents your company .

N = 188

N = 189N = 190

Enterprise Type Business Model

Company Revenue

50%49%

Public

Hybrid Company

PrivateB-to-B

Company

Venture Capital

Below $100 Million

$1 Billion to $11 Billion

More than $11 Billion

B-to-C Company

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

Half the respondents work in a public company .

Respondent Demographics: Top Five Participating Industries

Survey Question: Please indicate which industry categories best describe your company (check all that apply .)

N = 190

Professional Services

Financial Services

Information and Communication Technologies

Chemicals, Materials, and Food

Healthcare and Life Sciences

0% 10% 20%

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