growth team membership- 2011 market research and competitive intelligence priorities survey results
TRANSCRIPT
1
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
growth team m e m b e rs h i p™
in cooperation with
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
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
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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2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
What is the Growth Team Membership™?
The Growth Team Membership™ (GTM) is a subscription program that supports executives within the functions reporting to the CEO
GTM provides best practices, events, and services to enable executives to address internal challenges within their companies
CCorporateStrategy
Coorrppoorrate DDevelopment
Marketing
CompetitiivveeIInntteelllliigence
MMarketResearch
SalesLeadershipp
R&D/IInnnnoovvation
IInnvvestors/Finance
CEO
MarketResearch
CompetitiveIntelligence
If you have any questions or comments, please contact us
Email us [email protected] Visit us online www.gtm.frost.com
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 function/company’s performance and productivity
4
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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
5
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
External Factors Shaping Market Research and Competitive Intelligence’s Strategies
6
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2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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%)
7
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2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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)
8
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2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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%)
9
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Key Market Research Challenges
10
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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
11
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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%)
12
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Market researchers’ key challenges vary greatly by business model
Top Five Market Research Challenges (By Business Model)
B-to-B B-to-C Hybrid
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%)
13
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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
Strategic Alignment: Insufficient senior management support (30%)
Challenge 3Contributing to the company’s strategic priorities
Strategic Alignment: Insufficient senior management support (33%)
Challenge 4Maintaining a portal for centralized knowledge management
Technology/Systems: Inappropriate technology used (30%)
Challenge 5Communicating data and insights in an actionable manner
Strategic Alignment: Insufficient senior management support (33%)
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
14
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Market Research Effectiveness and Expenditures
15
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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 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”
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
All Companies B-to-B Companies B-to-C Companies
16
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
12% 11%
37%40% 44%
6%13%
37%
40%
4%
39%
26%
31%
60%
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
Above Average
Exceptional Exceptional
Exceptional
Below Average Below Average
Below Average
Average Average
AverageAverage
17
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
0%
10%
20%
30%
40%
50%
60%
70%
64%
40%38%
12%
40%
33%
16%
20%
13%
0% 0%
8%
2%0%
4%2%
0% 0% 0%
5%
0%
55%
1%5%
20%15%
2% 2%
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
$3 Million— $4.99 Million
$5 Million— $9.99 Million
$10 Million to $19.99 Million
$20 Million or more
All Companies B-to-B Companies B-to-C Companies Hybrid Companies
18
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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%)
19
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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)
B-to-B B-to-C Hybrid
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%)
20
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
0%
10%
20%
30%
15% 15%
10%
3%
10%10%
0%
10%10% 10%10%10%
0% 0%
5% 5% 5%
10%
20%
10%10% 10%10%10%
0% 0% 0% 0% 0% 0%
15%
10% 10%
4%
0% 0%
5% 5%
15%
5%
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 .
The red percentages are for all respondents .
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
All Companies B-to-B Companies B-to-C Companies Hybrid Companies
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
21
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
1%
4%4%
15%
17%47%
7%7% 7% 7%
14%
18%
5%
48%
25%
25%
25%
25%
21%
13%13%
46%
6%
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:
All Companies B-to-B Companies
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
Stay the Same
Stay the Same
Decrease Moderately (10%)
Decrease Moderately (10%)
Decrease Moderately (10%)
Decrease Slightly (5%)
Decrease Slightly (5%)
Decrease Substantially (25%)
Increase Substantially (25%)
Increase Substantially (25%)
Increase Moderately (10%)
Increase Moderately (10%)
Increase Slightly (5%)
Increase Slightly (5%)
Increase Slightly (5%)
22
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
46%
8%
4% 4%
17%
21%
38%
8%
20% 19%
11%
12%
37%
9%13%
6% 7%5%6%
9%
25%25%
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:
All Companies B-to-B Companies
Hybrid 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
Stay the Same
Decrease Moderately (10%)
Decrease Moderately (10%)
Decrease Moderately (10%)
Decrease Slightly (5%)
Decrease Slightly (5%)
Decrease Slightly (5%)
Decrease Substantially (25%)
Decrease Substantially (25%)
Increase Substantially (25%)
Increase Moderately (10%)
Increase Moderately (10%)Increase Moderately (10%)
Increase Slightly (5%)
Increase Slightly (5%)
Increase Slightly (5%)
B-to-C Companies
23
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
11% 11%
22% 21%
25%25%
13%
4%
63% 63%
75%58%
5% 5%
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:
All Companies B-to-B Companies
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
24
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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:
11%
17%
25%
30%
6%
4%
52%
48%
52%
75%
9%9%
23%
25%
6% 7%
All Companies B-to-B Companies
Hybrid Companies
Decrease Moderately
Decrease Substantially Increase Substantially
Increase Moderately
Stay the Same
Decrease Moderately
Decrease Moderately
Decrease Substantially
Decrease Substantially
Increase Substantially
Increase Moderately
Increase Moderately
Increase Moderately
Stay the Same
Stay the Same
Stay the Same
B-to-C Companies
25
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Key Competitive Intelligence Challenges
26
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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
Packaging and communicating competitive data and insights to
drive stakeholder decision making
Challenge 2
Packaging and communicating competitive data and insights to
drive stakeholder decision making
Challenge 2
All Companies B-to-B Companies B-to-C Companies
27
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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%)
28
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Respondents across all business models are challengedby driving strategic decision-making
Top Five Competitive Intelligence Challenges (By Business Model)
B-to-B B-to-C Hybrid
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%)
Packaging and communicating competitive data and insights to drive stakeholder decision making (20%)
Packaging and communicating competitive data and insights to drive stakeholder decision making (16%)
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
Using informal networks to capture the competitive information held by the company’s employees (13%)
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%)
Using informal networks to capture the competitive information held by the company’s employees (13%)
29
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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
Strategic Alignment: Insufficient senior management support (26%)
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
30
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Competitive Intelligence Effectiveness and Expenditures
31
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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 staffing levels to stay the same
Respondents expect their 2011 competitive intelligence budgets to
increase moderately
Respondents rank their competitive intelligence function’s effectiveness as
“Above Average”
The competitive intelligence function tends to report directly to Marketing
Respondents expect their 2011 staffing levels to stay the same
Respondents expect their 2011 competitive intelligence budgets to stay
the same
Respondents rank their competitive intelligence function’s effectiveness as
“Average”
The competitive intelligence function tends to report directly to Marketing
Respondents expect their 2011 staffing levels to stay the same
Respondents expect their 2011 competitive intelligence budgets to stay
the same
All Companies B-to-B Companies B-to-C Companies
32
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
8%
6% 9%9%
9%19%
23%
42%
29%
17%
18%
64%
36%
38%
40%
33%
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)
All Companies B-to-B Companies
B-to-C CompaniesHybrid Companies
Above Average Above Average
Above Average
Above Average
Exceptional Exceptional
ExceptionalExceptional
Below Average Below Average
Below AverageBelow Average
Average
Average
Average
Average
Survey Question: Please assess the overall effectiveness of your competitive intelligence function in compared to those in other firms within your industry:
33
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
0%
10%
20%
30%
40%
50%
43%
27%
23%
12%
18%
13%
16%18%
23%
5%
0%
10%
4%
0%
13% 12%
9%
13%
3%
0%
3%
36%
13% 18%
6%6%
12%
3%
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?
The red percentages are for all respondents .
Marketing Market Research Strategy/Planning Sales/Business Development
R&D/Innovation CEO/President/General Manager
Finance
All Companies B-to-B Companies B-to-C Companies Hybrid Companies
34
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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$ .
0%
10%
20%
30%
40%
50%
60%
70%
80%
69%70%
78%
13%10%
6% 6%
20%
6% 7%
0%3% 1%
0%3%
0% 0% 0% 0% 0% 0%
4%
0%3%
72%
11%
2% 0% 0%4%
7%5%
The majority of respondents have budgets under $250,000
Competitive Intelligence Budget (By Business Model)
The red percentages are for all respondents .
Less than $250,000
$250,000 to $499,999
$500,000 to $999,999
$2 Million to $2.99 Million
$1 Million to $1.99 Million
$4 Million to $4.99 Million
$3 Million to $3.99 Million
$5 Million or more
All Companies B-to-B Companies B-to-C Companies Hybrid Companies
35
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2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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)
8% 8%
22%33%
3%3%3%
10%
20%
1%
18%
6% 8%
65%68%
81% 44%
All Companies B-to-B Companies
B-to-C CompaniesHybrid Companies
Stay the SameStay the Same
Stay the SameStay the Same
Decrease Moderately Decrease Moderately
Decrease Moderately Decrease Moderately
Decrease SubstantiallyDecrease Substantially
Decrease Substantially
Increase SubstantiallyIncrease Substantially
Increase Substantially
Increase Moderately Increase Moderately
Increase Moderately
Increase Moderately
36
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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)
11%
20%
50%
33%
3%
3%
6%
41%
3%
4%
12%
27%
51%
30%
5% 7%
48%
47%
All Companies B-to-B Companies
B-to-C CompaniesHybrid Companies
Stay the Same Stay the Same
Stay the SameStay the Same
Decrease Moderately Decrease Moderately
Decrease Moderately Decrease Moderately
Decrease Substantially Decrease Substantially
Decrease Substantially
Increase Substantially Increase Substantially
Increase Substantially
Increase Moderately Increase Moderately
Increase ModeratelyIncrease Moderately
37
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Competitive Intelligence and Technology
38
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Keyword Research and Tracking are the primary tools used by
CI executives
Keyword Research and Tracking are the primary tools used by
CI executives
Keyword Research and Tracking are the primary tools used by
CI executives
Market research activities are the primary focus of CI teams
Market research activities are the primary focus of CI teams
Market research activities are the primary focus of CI teams
All Companies B-to-B Companies B-to-C Companies
Competitive Intelligence and Technology Snapshot
39
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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) .
40
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
The tools utilized by CI executives vary only by prioritization across business models
Top Five Competitive Intelligence Tools/Software (By Business Model)
B-to-B B-to-C Hybrid
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%)
41
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Survey Question: Please indicate the primary focus of your CI activities .
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
9%
14%
20%
0% 0% 0%
12%
0%
5%7%
0%
5%
72%
86%
70%
12%
0%
73%
6%9%
Market research is the primary focus of CI projects
Competitive Intelligence Project Focus Areas (by Business Model)
The red percentages are for all respondents .
Technical Regulatory Customer M&A Activity Market
All Companies B-to-B Companies B-to-C Companies Hybrid Companies
42
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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 .
43
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Respondent Demographics
44
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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
1%
50%49%
30%
7%63%
Public
Hybrid Company
PrivateB-to-B
Company
Venture Capital
0%
30%
60%
20%
10%6%
34%
23%
Below $100 Million
$100 Million to $499.99 Million
$500 Million to $999.99 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 .
45
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
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%
16%
20%
20%
11%
9%